A mortgage deed is a legal document that refers to the mortgage lender’s interest in the property. If the homeowner has sought a mortgage to help them buy their home, it means the lender of that money has an interest in the property. If the homeowner cannot keep up with their payments, the lender would seek repossession of the property to recoup their money.
The deed is not a long document – it typically only covers one or two pages. You should read it carefully prior to signing it. It highlights the terms of the loan you have accepted to help you buy the property. Once signed, it acts as legal proof that you agree to the terms laid out in the mortgage.
As such, the deed will clearly state your name and address and the name and address of the lender of the mortgage as well. It also states the exact sum you are borrowing from the lender. The terms of the deed are also listed and should be read and understood prior to signing. The document basically states that the lender has an interest in the property because they have lent the money to make the purchase possible. So, while you own your property and pay the mortgage on it to make this possible, the deed confirms the lender you chose also has an interest in it. Once the loan is repaid in full, this would no longer be relevant as you would own the property outright and the lender would no longer hold an interest in it.