Collateral Mortgage
A collateral mortgage is registered on title as a collateral charge, often for an amount higher than the actual mortgage balance. This allows the lender to secure not just the mortgage, but potentially other borrowing under the same registration.
Because the registration can stay in place, some borrowers can add credit later without re-registering a brand-new charge. However, collateral charges can make it harder or more expensive to move the mortgage to a different lender, because the new lender may require a discharge and new registration.
Why this matters:
Collateral mortgages can be convenient if you plan to borrow more later, but they can reduce flexibility at renewal time. Understanding the registration type helps you avoid surprises when trying to shop rates.
Related Mortgage Terms
Often confused with:
Refinancing — Refinancing changes borrowing; collateral registration is about how the loan is secured/registered.
Closely related:
Mortgage — It’s a variation in how a mortgage is set up legally.
Equity — Additional borrowing often depends on available equity.
Next step:
Refinancing — Understand how registration type can affect switching or restructuring.