ABSTRACT
Mortgage is a loan of money secured against property; but in legal terms it is also one of the five classes of legal interest in land listed in s 1 of the Law of Property Act 1925. A legal mortgage is created by 'legal charge', under s 85 LPA 1925, affected by the execution of a mortgage deed. The borrower's rights under the terms of the mortgage are divided into rights that are legal in nature and those that take effect in equity. Equity has the power to strike down any unconscionable or oppressive terms in the mortgage agreement. Mortgages generally given priority in order of the date of their registration either at the Land Registry or as Land Charges in unregistered land. Mortgages of equitable interests are much more common in practice than informal mortgages of the legal interest. The only formality required for their creation is that they must be made in writing.
