chapter  12
36 Pages

Mortgages

WithJudith Bray

This chapter explains what is meant by a mortgage. It traces the development of mortgages through history. The chapter aims to compare a mortgage and a charge. It discusses an equitable mortgage and a legal mortgage. The chapter describes the protection given to the mortgagor. It explores the rights of the mortgagee. The chapter examines the basic principles of priority of mortgages. Mortgage is one of the most important interests in land. In essence, mortgage is a form of security interest in land which will guarantee the amount of a loan made so the mortgagee has confidence that he will be able to recover his money. Most people will have to borrow funds but a mortgagee will be unwilling to lend money without a substantial security. The security will ensure that the mortgagee has an asset to claim if the mortgagor fails to repay the money borrowed.