The Two-party Mortgage is a standard two-party form of mortgage between the Mortgagor (who is also the Borrower) and the Lender in relation to a mortgage of real property provided as security by the Mortgagor for the loan facility provided by the Lender:
(A) The Mortgagor and the Lender has 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 below.
In deciding whether to adopt the Two-party Mortgage, the mortgage lender should consider whether the Two-party Mortgage is compatible with its operational procedures and the requirements of the loan transaction.
The Two-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 mortgagor and performance of the mortgagor’s obligations under the Two-party Mortgage. The Two-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 Two-party Mortgage is in a two-party form which can be executed by an individual or corporate mortgagor.
The Two-party Mortgage consists of two parts: (a) the blank form Mortgage Deed and (b) the Mortgage Conditions.