Mortgage deed signing

NI_Sense

Hi. Appreciate your help.

Situation is - I am in the process of selling my home and buying another at the same time - accepted offer on mine, and have offer accepted on another house. My solicitor has just started conveyancing. Anyway, at some stage I will be asked to sign a mortgage deed. My solicitor says 'this done prior to the release
of your contract to purchase and before completion'. They go onto say - 'The mortgage deed...blah blah... creates a charge in favour of your lender to protect their security'.

Can someone tell me what the above statement means exactly? I am getting mixed messages as to when I should sign a mortgage deed (before exchange or after), and what it commits me to exactly.

I live in N. Ireland, so same rules apply as in England and Wales.

Help is appreciated.

davidmcn

It means the lender will have a mortgage over your property i.e. the right to repossess it if you default on the terms of the loan.

It doesn't matter in the slightest when you sign it, other than you must sign it before completion happens. It will be meaningless until completion happens, it will just sit on your solicitor's file.

Where are you getting "mixed messages" from?

Seashell517

NI_Sense said:

Hi. Appreciate your help.

Situation is - I am in the process of selling my home and buying another at the same time - accepted offer on mine, and have offer accepted on another house. My solicitor has just started conveyancing. Anyway, at some stage I will be asked to sign a mortgage deed. My solicitor says 'this done prior to the release
of your contract to purchase and before completion'. They go onto say - 'The mortgage deed...blah blah... creates a charge in favour of your lender to protect their security'.

Can someone tell me what the above statement means exactly? I am getting mixed messages as to when I should sign a mortgage deed (before exchange or after), and what it commits me to exactly.

I live in N. Ireland, so same rules apply as in England and Wales.

Help is appreciated.

'Your home may be repossessed if you do not keep up repayments on your mortgage.'

The charge is the lender's means of taking your house off you if you don't make your payments or breach their terms. If you don't sign, no mortgage, probably no house. If you sign (when your solicitor sends it you to sign, just return it as soon as you can, after getting your signature witnessed) then you're commited to making your mortgage payments on time and keeping to the Ts&Cs.

Irishpearce26

Surely if you have bought a house before you know all of this and how the process works??

NI_Sense

Irishpearce26 said:

Surely if you have bought a house before you know all of this and how the process works??

25 years ago mate! The memory slips believe me.

NI_Sense

Seashell517 said:

NI_Sense said:

Hi. Appreciate your help.

Situation is - I am in the process of selling my home and buying another at the same time - accepted offer on mine, and have offer accepted on another house. My solicitor has just started conveyancing. Anyway, at some stage I will be asked to sign a mortgage deed. My solicitor says 'this done prior to the release
of your contract to purchase and before completion'. They go onto say - 'The mortgage deed...blah blah... creates a charge in favour of your lender to protect their security'.

Can someone tell me what the above statement means exactly? I am getting mixed messages as to when I should sign a mortgage deed (before exchange or after), and what it commits me to exactly.

I live in N. Ireland, so same rules apply as in England and Wales.

Help is appreciated.

'Your home may be repossessed if you do not keep up repayments on your mortgage.'

The charge is the lender's means of taking your house off you if you don't make your payments or breach their terms. If you don't sign, no mortgage, probably no house. If you sign (when your solicitor sends it you to sign, just return it as soon as you can, after getting your signature witnessed) then you're commited to making your mortgage payments on time and keeping to the Ts&Cs.

See this is the reason I go this forum. Very clear answer. thank you very much.

Irishpearce26

NI_Sense said:

Irishpearce26 said:

Surely if you have bought a house before you know all of this and how the process works??

25 years ago mate! The memory slips believe me.

Ha that is true. Pretty much you will sign everything you need to before exchange. You exchange contracts and then complete the sale. Your lender as others have highlighted will have a charge over your deeds in the event you stop making payments they can take possession and recoup their investment (loan). Your solicitors holds on to all the paperwork until you say he has authority to exchange. 

NI_Sense

davidmcn said:

It means the lender will have a mortgage over your property i.e. the right to repossess it if you default on the terms of the loan.

It doesn't matter in the slightest when you sign it, other than you must sign it before completion happens. It will be meaningless until completion happens, it will just sit on your solicitor's file.

Where are you getting "mixed messages" from?

Again. Very helpful answer. Mixed messages are that some people are saying before exchange of contracts,  some people are saying after. I would imagine the quicker its signed, the less the hold up to completion.

NI_Sense

Irishpearce26 said:

NI_Sense said:

Irishpearce26 said:

Surely if you have bought a house before you know all of this and how the process works??

25 years ago mate! The memory slips believe me.

Ha that is true. Pretty much you will sign everything you need to before exchange. You exchange contracts and then complete the sale. Your lender as others have highlighted will have a charge over your deeds in the event you stop making payments they can take possession and recoup their investment (loan). Your solicitors holds on to all the paperwork until you say he has authority to exchange. 

Thanks mate. Its also true that less marbles are floating about in my head these days, but thats me! Anyway, nothing is written in stone until after exchange so I guess I'm worrying about nothing.

davidmcn

NI_Sense said:

davidmcn said:

It means the lender will have a mortgage over your property i.e. the right to repossess it if you default on the terms of the loan.

It doesn't matter in the slightest when you sign it, other than you must sign it before completion happens. It will be meaningless until completion happens, it will just sit on your solicitor's file.

Where are you getting "mixed messages" from?

Again. Very helpful answer. Mixed messages are that some people are saying before exchange of contracts,  some people are saying after. I would imagine the quicker its signed, the less the hold up to completion.

The actual deadline is completion, there's no legal need for it to be signed before exchange but I expect solicitors may prefer to remove the risk of stress and hassle by having things signed earlier rather than later.

davelewis

The mortgage deed will no doubt be 'undated' when you sign it (there may be written 'Do not date' in pencil where it should be dated). This is all completely normal and it will be dated the day of completion. You will sign it beforehand to make completion easier. In effect, when you sign it does not really matter.