The Three-party Mortgage Deed is a standard three-party form of mortgage between the Mortgagor (i.e. the Borrower) and the Mortgagee (i.e. the Lender) in relation to a mortgage of real property provided as security by the Mortgagor for the loan facility provided by the Lender to the Borrower.

(A) The Borrower and the Lender have entered into the Facility Agreement.

(B) As security for the facility under the Facility Agreement, the Mortgagor has agreed to mortgage the Property to the Lender for the consideration and upon the terms set out.

The Three-party Mortgage creates an assignment of or a legal charge over (so far as the property involved is a legal estate) completed residential property to secure repayments of any type of banking facilities and loans granted to the borrower (where it is not the same person as the mortgagor) and performance of the obligations of the borrower and the mortgagor under the Three-party Mortgage. The Three-party Mortgage is not appropriate for use in connection with uncompleted properties, which require the use of a separate form of equitable mortgage deed. The Three-party Mortgage is in a three-party form which can be executed by an individual or corporate mortgagor and/or borrower.

How to use this Document?

This document should be carefully read by the Individual Mortgagor, Borrower and Lender.

All parties should sign and return a copy, and once signed, all parties should get a copy. To avoid any future disputes, all parties may wish to have their signatures witnessed.

The Mortgage Conditions should be clearly stated.

If either party wishes to amend the agreement in the future, all parties should agree to do so, and the original agreement and amendments should be recorded in writing and signed by all parties.