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Mortgage Glossary

Terms & Definitions

Collateral Mortgage (Collateral Charge)

A collateral charge is a mortgage registered on title at a value higher than the actual amount being advanced. Most institutional lenders register a collateral charge up to 120% of the original mortgage to allow homeowners to borrow more money in the future or get a home equity line of credit without incurring additional legal fees.

Collateral Charge On Two or More Properties

A collateral charge on two or more properties is a mortgage loan amount registered with the land registry office for the same amount on each property, however, the loan amount remains the same. Most private lenders offer collateral charges, as it gives them more security for their investment.

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