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Finance Information   »»  Mortgages

A mortgage is basically a method of using property as security for the payment of a debt.

The term mortgages is refer to the legal device used for the purpose of debting. Secure loans are basically considered as a mortgage loan.

The main participants of mortgage loan are:










  1. Creditors
  2. Debters
  3. Mortgage by demise
  4. Mortgage by legal charge

 Creditors:

    The creditor has legal rights to the debt or other obligation secured by the  mortgage. That  debt is often the  obligation to  repay the loan  by the creditor (or its predecessor lender) who provided the purchase money  to acquire the property mortgaged. Typically, creditors are banks, insurers or other financial institutions who make loans available for the purpose of real estate purchase.A creditor is sometimes referred to as the mortgagee or lender.

 Debtors:

    The debtor is the person or entity who owes the obligation secured by the mortgage, and may be multiple parties. Generally, the debtor must meet the conditions of the underlying loan or other obligation and the conditions of the mortgage. Otherwise, the debtor usually runs the risk of foreclosure of the mortgage by the creditor to recover the debt. Typically the debtors will be the individual home-owners, landlords or businesses who are purchasing their property by way of a loan.A debtor is sometimes referred to as the mortgagor, borrower, or obligor.

 Mortgage by demise

    In a mortgage by demise, the creditor becomes the owner of the mortgaged property until the loan is repaid in full also known as redemption. This kind of mortgage takes the form of a conveyance of the property to the creditor, with a condition that the property will be returned on redemption.

 Mortgage by legal charge

    In a mortgage by legal charge, the debtor remains the legal owner of the property, but the creditor gains sufficient rights over it to enable them to enforce their security, such as a right to take possession of the property or sell it.To protect the lender, a mortgage by legal charge is usually recorded in a public register.