mortgage is a contract between the lender (mortgagee), and the
borrower(mortgagor) whereby the mortgagor’s property becomes
security for money lent by the mortgagee. The debt becomes a charge
over the real estate.
land cannot be destroyed or lost and not easily damaged it is good
security for money borrowed. For this reason the housing loans have
the lowest lending rate. The charge over land has priority against
other creditors of the mortgagor and the first mortgagee has priority
over the second mortgagee.
disadvantage of real estate as security is that it is illiquid. That
is it cannot be quickly converted into cash.
mortgage is a statutory charge or security only and not a transfer of
land. The mortgage confers an interest but no estate and the mortgage
charge is created upon registration of the mortgage on the
unregistered mortgage is enforced as an
and subsequent mortgages