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What is a Mortgage Deed?
Characterised by a reference number, and unique to the lender, a Mortgage Deed is the formal Deed which, when purchasing a property with the assistance of a mortgage, or indeed re-mortgaging a property, you, the borrower, must sign to confirm agreement to the terms set out within the Mortgage Offer.
Once executed, the mortgage deed 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 it, 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 conveyancing solicitors in Preston are here to ensure that the Mortgage Deed is executed effectively to avoid issues or delay at a later date.
Our guide to the Mortgage Deed:
What is a Mortgage Deed?
The Mortgage Deed is the legal document that explains the conditions under which you and your Mortgage Lender have agreed to the mortgage’s repayment schedule, duration, rates, and security. Here at MG Legal, we are happy to go through the Mortgage Deed with any of our clients, highlighting the key elements and explaining what they mean. You should always make sure that you have properly read and understood all of the terms and conditions of the mortgage agreement before you sign the Mortgage Deed.
What should I consider before signing the Mortgage Deed?
The Mortgage Deed is a legally binding document, and so should be considered carefully before it is signed.
Before signing the Mortgage Deed, make sure to consider the following:
Are the details noted on the Mortgage 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 conveyancing 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.
Why is the Mortgage Deed important?
As the Mortgage Deed is a legally binding contract between you and the mortgage lender, it is essentially a legally binding promise that you will meet the conditions of the mortgage loan and will meet the re-payments.
All mortgages must be repaid within a certain period of time, which varies between mortgages, the Mortgage deed ensures that the mortgage lender can rely on you to meet these requirements.
Recent changes to the Re-mortgaging Mortgage Deed 2021:
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 do I sign a Mortgage Deed?
The Mortgage Deed must be signed in person and then sent back to your conveyancing solicitor. The Mortgage Deed will be sent to your address from the mortgage lender. If you would like our conveyancing solicitors to assist in the process, talk you through the Mortgage Deed, or act as a witness for your Mortgage Deed, we are more than happy to arrange this.
Mortgage deed witness:
To be enforceable in law, mortgage deeds require a wet signature that is physically witnessed. This is to prevent mortgage fraud from occurring.
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.
How does it work to sign a Mortgage Deed electronically?
If you are re-mortgaging your property, you might be looking to sign your Mortgage Deed electronically. 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 towards 2022, over 20,000 Mortgage Deeds have now been effectively executed and registered using this method. 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.