A guide to Lender Security Terminology

Before lending money to a borrower, lenders want to be sure that the loan will be repaid.


To ensure that they can regain the loan money if the borrower defaults, lenders take security over something of value that a borrower owns:

·       Mortgage

A mortgage is the transfer of an interest in property to a lender as a security for a debt.

·       Charge

Charges are over assets (not over companies or people). The asset is known as being "charged’ and securities are also known as charges.

·       Lien

A Lien is a legal claim against property to ensure payment of a debt, which allows the property to be taken and sold by a creditor to pay the debt.


Need a property or construction loan?

Contact us @ propertyloans@realrenta.com


Jason Gwerder
Thursday, 12 March 2020

Join our mailing list Receive Free Property Tips and news

Now Partnered With


Contact Us

1300 11 RENT (7368)