Your mortgage in principle is not your mortgage deed. Many people confuse the two terms and it’s a detrimental mistake. Without the deed, the mortgage isn’t legal and the property can’t exchange hands. This legal document makes the deal official between you and the mortgage company.
Sending you the Mortgage Deed
Your solicitor will send you a mortgage deed after exchanging contracts with the seller. The solicitor will go over all of the conditions with the seller and do the negotiating for you. Once agreements are made, the solicitor will send you the mortgage deed to sign. This is what makes the contract for home loan funds official.
You must sign the document once you are sure you are happy with the terms of the mortgage. You’ll need witnesses near you when you sign it. Make sure you don’t sign the deed until you know all terms of the loan to ensure that you are aware of what you are accepting.
The Mortgage Deed Differs from the Title Deed
It’s important to understand that the mortgage deed is different than the title deed. The title documents document the chain of ownership. The mortgage documents provide the details of the loan you agree to take on in order to buy the home.
The title deed includes all information regarding the ownership of the property including any mortgages, leases, wills, and contracts for sale on the property. You won’t have the original title deed. The solicitor or mortgage company may have them. Title deeds are registered with the government; however, and you can obtain digital copies online.
Title deeds let you know if there are any restrictive covenants that would affect your property ownership. It also lets you and the solicitor know if there are any disputes over the property’s ownership, which you would obviously want to know before you bought the home.
The Details of the Mortgage Deed
Each mortgage deed differs slightly, but in general, you’ll see the following information on it:
- Your names as the borrowers
- The lender’s name
- The conditions of the mortgage
- The property address
- The postcode
- The title number
By signing the document you agree that you received a copy of all of the mortgage conditions and that you agree to them. You also agree that you are making the agreement with full title guarantee.
You must sign the mortgage along with your witnesses. Upon receipt, the lender will sign and date it as well.
The mortgage deed is a serious legal document. Make sure you understand the terms before signing it as you are using your home as collateral for the deed. Ask questions and ensure that you know the terms of the deal in order to protect yourself.