Collateral Charges

Many chartered lenders secure their mortgages as collateral charges or as running accounts on the title meaning that, although a client's mortgage term may be over, the charge held by the lender does not expire. Collateral charges are typical for secured lines of credit where there is no set end date for the loan. A mortgage term however, does typically expire and having a collateral charge means the client is not able to transfer their mortgage to a new institution without incurring legal fees. Always ask your broker or lender about collateral charges, they can limit your ability to move your mortgage in the future. See the article below for news on changes to collateral mortgage rules. For more information about all kinds of mortgages, call me today!