Collateral Mortgage Charge

A mortgage charge that is secured by a borrower’s property where the registration on title can be for an amount higher than the mortgage amount. The charge is registered as a lien on the property financed by the mortgage. The result is often a re-advanceable mortgage where the lender has a claim against the property for more than the amount of the original mortgage. If the borrower fails to make the required payments, the lender can take legal action to enforce their rights under the mortgage charge and recover the amounts that are owed. Their legal remedies include a right to sell the property.