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​UNDERSTANDING MORTGAGE CHARGES 

UNDERSTANDING MORTGAGE CHARGES 

The Police Credit Union offers two different mortgage charges

When your house is taken as security for our mortgage, mortgage security will be registered on the title of the house in the applicable land registry office. This is commonly known as a 'charge' or a 'mortgage'.  This charge gives the lender the legal right to take action against you and the house if the mortgage is in default.

We offer our members a choice of the type of mortgage they prefer. Please note high ratio and investment mortgages will only be registered as a conventional mortgage charge. 

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Registered Amount

Conventional Mortgage Charge 
The Loan Amount

Collateral Mortgage Charge
110% of the Property Value

Specific Details of the Mortgage

Details are listed in the charge that is registered against your house.

Details are not included in the charge registered against your house. A seperate credit agreement contains these details.

Future Borrowing 

Refinancing will require the discharge of the existing charge and a new registration will need to be registered, requiring a lawyer, and additional costs.

Refinancing up to the charge amount may be possible without additional legal costs. Minimal internal fees may be applicable.

Home Equity Line of Credit

Adding a home equity line of credit will require the registration of an additional charge, requiring a lawyer, and additional legal costs.

Adding a home equity line of credit may be possible without additional legal costs. Minimum internal fees may be applicable.

Ability to Transfer

Transferring to another lender may be possible without incurring legal costs

Transferring to another lender is not permissible unless the mortgage is discharged. The new lender will need to register a new charge.

Discharging the Charge 

Once the mortgage is paid in full the lender will proceed with a discharge.

If there are other loans secured to the collateral charge after you have repaid your mortgage loan the charge will not be discharged allowing for further advances if required with no legal fees.

​Need more information?

Talk to one of our Financial Services Officers today!

Need more information?

Talk to one of our Financial Services Officers today!