Who can witness a mortgage deed? Anyone who is not related to you and who does not have the same surname or has an interest in the home. A mortgage deed, also known as court fees, is a legally binding agreement between you and your mortgage lender. Confirm that you agree to the terms of your mortgage, including how and when it will be paid.
You sign a mortgage deed if you:
- Buying a house with a mortgage
- Transferring your home, which means renegotiating the terms of your original mortgage
What is a mortgage deed?
A mortgage deed is any legal instrument, in writing, that conveys, affirms or affirms an interest, right or property. It must be signed, notarized, delivered and stamped in some jurisdictions (but no longer in England and Wales). It is often associated with the transfer of title, commonly known as a transfer.
Mortgage deeds explained
Your mortgage is the loan you get from a lender (usually a bank or mortgage lender) to buy your new home.
The mortgage deed is the legal document that goes with it.
It is usually about 1-2 pages long and has your unique reference number, which identifies you as the borrower.
You sign a mortgage deed to agree to the terms of the mortgage offer, including:
- Condition. If you can’t repay the loan, the lender is legally entitled to certain assets, in this case, the house you’re buying.
- Type of mortgage.
- Repayment schedule. This states when you will repay the loan and at what price. It will be outlined:
- Duration of the mortgage. In general, the more time you spend paying off your mortgage, the less money you will pay each month, but the more money you will pay in total.
- Mortgage rates. That is the amount of interest you owe on the amount you owe. Depending on your mortgage deal, your rate is either fixed (where it stays the same for some time) or variable (where the interest rate changes over time-based on the market rate).
How should the deed be signed and witnessed?
The Land Registry has recently issued updated guidelines on how deeds should be executed (or signed and attested).
Each person must sign “in the presence of a witness confirming the signature” (s1(3) LP (Miscellaneous Provisions) Act 1989).
Witnesses’ signatures must be clear and they must also print their name and address below their signature. Again, this should be printed clearly.
Steps to sign your mortgage deed
- Check if your details are correct. Get over here:
Your personal information
- Accept that you are happy with the terms of the mortgage. Read them in detail. Read them again. Ask questions if you don’t understand something.
- Sign the deed. By signing the deed, you are happy to continue with the terms of your mortgage offer. You must do this step before the house is officially in your name.
If someone else’s name is on the mortgage, such as a spouse or parent, they must also sign it.
Your carrier will post the deed. He will check it, sign it for a witness and then return it to you.
By signing the deed, you are happy to continue with the terms of your mortgage offer.
Who Can Witness A Mortgage Deed?
Who can witness a mortgage deed? The same witness can witness each signature, but each signature must be separate and authenticated (in other words, the witness must sign and print their records, such as the names of the deed signers).
Part of the deed cannot witness the signing of another part of the deed.
The relevant legislation does not prevent the spouse of the signatory, the common partner or the house partner of the signatory from acting as a witness (if not as part of a deed), but according to the Property Register (and indeed our advice ) is best avoided.
Your witness must be:
- Someone you are not related to
- A person with no interests or connections to the property.
- Older than 18 years
- Live in a different place than yours
Your carrier can be your witness. The same can be done by a neighbour or co-worker.
How Old Must The Witness Be – Who Can Witness A Mortgage Deed?
It is also advisable that the witness be not less than 18 years old, or at least mature enough to have his statement valid in case it is later necessary to verify the circumstances under which the execution took place.
This Is Why Your Mortgage Deed Is Important
Your mortgage deed is important because it is legally binding.
While they scrutinize your finances before offering you a mortgage, your lender should know that if something goes wrong, they won’t keep anything. A mortgage deed is a promise to them that they can count on you to repay the loan according to the plan you have agreed upon.
So what happens when life takes a turn and you can’t pay your mortgage the way you planned?
The mortgage deed gives your lender what is called a lien on your home: a legal right to your property if you can’t pay the debt on the terms you’ve agreed to. If you can’t pay, your lender can sell the house to pay off the debt.
Mortgage deed and mortgage offer. Are they the same?
Mortgage quotes and mortgage deeds are two different steps in the same process.
First, you will receive a mortgage quote (or down payment offer), indicating that the lender has approved your mortgage application. This means they have all the information they need about your finances and the real estate you are interested in, and they are ready to take things to the next level.
The mortgage offer contains your details, the housing information and the conditions of the loan that is offered to you. There is usually a time limit on how long it will take for you to accept the offer.
Your lender will review your mortgage quote and prepare a report for you that summarizes the important parts. When they send you the report, they also send you the mortgage deed for you to sign.
By signing your mortgage deed, you legally confirm that you agree to the terms of your mortgage offer. The mortgage is only legally valid once this has been signed. You return the signed mortgage deed to your sender.
When does the mortgage deed end?
The mortgage deed is valid as long as you have that mortgage. If you later take out a mortgage again with another lender, you will sign a new mortgage deed for that lender and your transferor will replace the old one in the Land Registry.
Conclusion – So I signed the mortgage deed. What now?
Signing the mortgage deed means that you are now obligated to make the payments stated in your mortgage offer for the time agreed upon.
It also means that you are very close to owning a new home.
Now it’s time to get started closing the deal. This process is called “finishing” and includes:
- Pay your deposit. You pay your lawyer and he gives the money to the seller (or the bank if the seller is still paying a mortgage).
- Exchange of contracts with the seller. Your attorney will talk to your attorney to draft them. Once you trade contracts, they are legally binding, meaning neither you nor the seller can go back.
- Determine a completion day. This is the day you receive the keys to your new home.