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There are many misconceptions about mortgages and property liens which I hope this article will put right. They are not for instance a loan, even though the vast majority of people believe they are and often refer to them as a mortgage home loan. A mortgage is a secured debt using the property that is being purchased as the security for the debt until it is fully repaid. In fact, in reality, this isn’t the debt but the security required by the lender to protect their interests for the duration of the term.

Mortgages have in fact changed the face of house buying because they provide the facility for the purchase without the buyer paying the full cost upfront. The way this process works is presented in brief detail during the rest of this article. Being the financier, the mortgagee is the person who lends funds to the mortgagor or borrower. The document itself produces a lien on your property which is not cleared until the debt is paid.