If you want to buy a new home or property but don’t have enough cash, a mortgage can help. But early mortgages were different from the ones we know today.
The property itself secures a mortgage or property loan. This protects the lender or mortgagee from losses if the mortgagor or borrower does not pay the loan.
Mortgages were mentioned in England as early as 1190. However, the system then was more beneficial to creditors than to the people who needed the loan. Homebuyers in the early 1900s were required to make a 50% down payment, and the balance was paid within five years.
For instance, if the property were worth £200,000, the borrower would have to cough up £100,000 to get the loan and pay the remaining amount in five years. Hence, those who got a mortgage before already had a lot of money.
The terms and conditions of the loan are stated in the mortgage deed. This legal document contains details about the parties involved, the property, the loan amount, interest rate, and other important information. It also gives the lender legal rights over a property that serves as collateral.
To make it valid, the borrower must sign the mortgage deed and at least two witnesses. But before doing so, read the deed carefully to see if the mortgage terms are clearly stated, and you agree to them. Review the details to check if they are accurate. If you have any doubts or require clarification, don’t hesitate to ask.
Thanks to recent developments, a mortgage deed can now be signed electronically. This was first done in the UK in 2018. It requires inputting a unique code after reviewing the document. All that’s needed is an internet connection to access the deed anytime, anywhere.
Signing a deed electronically is a secure and convenient way of doing business that saves time and money and reduces paperwork. Once signed, the deed is stored electronically and can’t be lost or changed. In 2020 alone, over 1,000 mortgage deeds were electronically signed, and this trend is expected to grow in the coming years.
If you are too busy and need help reviewing your mortgage deed or need more information on electronic signatures, get in touch with the friendly lawyers of Deo Volente (DV) Solicitors in Bedford, UK. We offer personalized legal services and treat clients like family.