Land -> Mortgages

A mortgage of land is the conveyance/transfer of land made to secure future repayments of a loan. Thus the land is transferred to the lender subject to redemption… aka once you’ve paid up the loan the land is transferred back.

Mortgagor- Borrower in a mortgage (i.e. Some-guy).

Mortgagee- Lender in a mortgage (i.e. Bank).

Equitable Right of Redemption: a fundamental principle where the mortgagor is able to redeem the property early, however this is not an absolute rule a mortgagee can not always be allowed to redeem early (Knightsbridge v Byrne). The courts have struck down any attempt to ‘fetter the equity of redemption’ (Biggs v Hoddinott).

No clog on the equity of redemption: on redemption all mortgage obligations must be discharged. In Kreglinger v NewPatagonia Meat where a collateral advantage for the mortgagee maybe upheld where it does not prevent the mortgagor getting his land back. However any collateral provision that allows mortgagee an option to purchase the property as a clog and therefore void (Samuel v Jarrah Timber).

Interest rates on Mortgages: subject to the principle that equity will set aside a bargain which is oppressive/unconscionable (Cityland and Property v Dabrah).