What is the difference between a collateral and standard charge mortgage?

Your lender will register what is known as a “charge.” This process provides a means of securing a mortgage or other loan against your property. There are two types they may use: standard and collateral.

Residential mortgages have traditionally been registered with a standard charge.

A collateral charge mortgage allows you to use your home as security and potentially borrow additional funds or change loans and other credit agreements, without the need to discharge your registered mortgage, register a new mortgage for a higher amount and pay legal fees.