What is the Mortgage Deed?
Characterised by a reference number, unique to the lender, the Mortgage Deed, is the formal Deed which, when purchasing a property with the assistance of a mortgage, or indeed re-mortgaging a property, the buyer is to sign to confirm agreement to the terms set out within the Mortgage Offer, that has been supplied to them by the bank.
The Mortgage Deed, once executed, is a legally binding document and should, therefore, be considered very carefully before signing. You should take the advice of your conveyancing solicitor on signing the same, as well as that of your broker in respect of the loan itself. Only once you are satisfied, should you proceed with signing the Deed.
With a duty to the mortgage lender, as well as our valued clients, our solicitors in Preston are to ensure that the Mortgage Deed is executed effectively to avoid issues or delay at a later date. MG Legal’s solicitors in Lancaster and Preston have formed a checklist which you should carefully consider, before you sign the Mortgage Deed:
- Are the details noted on the Deed accurate and correct? We would advise that you carefully check the purchase price/property value, the property details and the spelling of your name(s) before signing.
- Do I have a suitable witness? The Mortgage Deed is to be signed in the presence of an independent witness, i.e. not a relative or anyone with an interest in the property. MG Legal’s conveyancing solicitors are on hand to assist in suitably witnessing such Deeds.
- Have I reviewed, and agree with, the terms of the Mortgage Offer? Our solicitors in Lancaster, and property solicitors in Preston appreciate that the Offer can involve a lot of information. It is, however, imperative that you carefully assess the same and inform your Lender if there is anything at all you are not in agreement with. If you require clarity on the terms set out within the Offer, our conveyancing solicitors can assist in clarifying the same.
Recent changes have been brought about which can allow for the Mortgage Deed to be digitally executed, in re-mortgage cases. The changes have been introduced by HM Land Registry and aim to reduce the amount of paperwork involved within the conveyancing transaction, but also to save time. When wanting to complete the matter as soon as possible, may just be the next best thing for our clients.
Our team understand that many of our clients have busy lives, with work and family commitments, and this recent development can help ease the process in conjunction with the pressures of daily life.
How does it work?
The process is simple, and, with the requirements of just the client’s full name, date of birth, an internet connection and contact number, are as follows:
The Lender creates the template Deed which is forwarded, by the conveyancing solicitor, to the client via a digital link.
The client then uses the GOV.uk facility to verify their identity before being allowed to proceed.
This then allows the client access to the Mortgage Deed for review.
Once satisfied with the Deed, the client is able to request a code to be sent to the contact number supplied.
The code, once received, can then be inputted which effectively acts as the ‘signature’ of the Deed.
What are the benefits?
‘Signing’ electronically can save time for busy clients;
- This method can also be more convenient, as it can be accessed at any time of day and anywhere with an internet connection;
- Electronic methods reduce the amount of paperwork involved in the transaction;
- There is a high level of security involved, particularly in respect of the mandatory identity checking;
- The Deed, once ‘signed’, is stored electronically at the Land Registry, therefore, cannot be lost or altered.
The advantages are apparent and, as we head into mid 2020, over 3,000 Mortgage Deeds have now been effectively executed and registered using this method. There are a number of lenders currently using the scheme and, in particular, Coventry Building Society are taking the same by storm, with 37% of all digital mortgages registered coming from Coventry Building Society.
The electronic signing is currently only available for re-mortgage transactions, however, with the use of technology on the ever-increasing rise, MG Legal’s team of conveyancing solicitors believe that the developments are only set to grow in this respect.
For more information on ‘digital mortgages’, or any other conveyancing query, contact our team of property solicitors in Garstang, Lancaster and Preston today at firstname.lastname@example.org.