A mortgage deed is a short document, usually around one to two pages long, that you will be required to sign as part of a mortgage application.
What is a mortgage deed?
The mortgage deed – or legal charge form, as it is sometimes known – will set out the terms and conditions of the mortgage. Once you have signed the mortgage deed, it becomes a legally binding document that confirms that you are happy to proceed with the mortgage under the terms listed.
Should my signature be witnessed?
When you sign the mortgage deed, you should have a witness present who is over 18, is not related to you and does not live at your address or the address to which you are moving. If you are making a joint application for a mortgage, the same person can witness both signatures on the mortgage deed.
Can my mortgage advisor witness my signature?
Some lenders will not accept a mortgage advisor as a witness, so it is best if you can find someone who is not related to you or the property in any way.
Can I sign my mortgage deed electronically?
Since the Covid pandemic has made face-to-face interactions more difficult, some lenders are accepting electronic signatures, as long as they are completed through a recognised and secure e-signing platform. HMRC released an updated guide on the Sign your Mortgage Deed Service provided through HM Land Registry on 23rd April 2021. You can read the guidance on their website.
What if my wife/husband/partner is not named on the mortgage?
Anyone who lives at your property and is not named on the mortgage is known as an occupier. When you sign a mortgage deed, you are giving the mortgage lender rights over your property. A mortgage is normally a first charge on a property, so if you fail to meet your repayments, the mortgage lender is repaid from sale proceeds first.
Anyone named on the mortgage must sign to say that they accept this, but the mortgage lender may require anyone classed as an occupier to complete an occupier consent form to show that they agree to this condition. Further information on occupier rights can be found online Sam Con.
Are my tenants occupiers?
Tenants are not considered occupiers because they live in your property under a tenancy agreement.
When should I sign the mortgage deed?
Once you have received your mortgage offer and you understand the terms and conditions, you may sign and return the mortgage deed.
Should I put the date on my mortgage deed?
Leave the date blank, and your conveyancer will add the date once they receive it back.