This Statement provides a guide to the types of security that
individuals can give over real estate and the formalities
required.
Mortgages/charges over real estate
People can give mortgages or charges over their real estate (ie
interests in land and buildings). Whilst there is a historic
difference and an academic debate, there is no real difference
anymore between the terms 'mortgage' and 'charge'
and the terms are used interchangeably in some Court judgments.
Legal mortgages/charges
A 'legal' charge or mortgage is one that is registered
over the legal title to the property. It must be given by deed and
registered against the title to the property. If the charge
supports a loan for less than certain limits, there may be further
Consumer Credit Act 1974 formalities.
