Enforcement

Mortgagor's obligations

In addition to an obligation to repay principal and interest, the mortgage will invariably:

1. •

   oblige the mortgagor to repair and insure the property, and

2. •

   contain restrictions on the mortgagor’s ability to let it

Mortgagee's rights

A mortgagee's remedies include sale and the appointment of a receiver. Taking possession and foreclosure will rarely be encountered in practice.

The mortgagee’s power of sale arises under Law of Property Act 1925, s 101 (LPA 1925) and is regulated by LPA 1925, s 103. This allows a mortgagee to instigate possession proceedings once:

1. •

   two current monthly instalments have fallen due and remain unpaid, or

2. •

   in the case of a repayable on demand mortgage, a notice requiring payment of the mortgage money has been served and payment has not been made three months after service

To provide a level of protection to defaulting homeowners, section 36 of the Administration of Justice Act 1970 provides that where the mortgagee is suing for possession and the mortgagor is likely to be able within a reasonable period of time