Mortgagee: What It Means (and Mortgagor)
"Mortgagee" and "mortgagor" are two of the most easily confused words in a mortgage. They sound almost identical but mean opposite things. This short guide explains exactly what a mortgagee is, how it differs from a mortgagor, and gives you a simple trick so you never mix them up again.
At a glance
- Mortgagee
- The lender (the bank)
- Mortgagor
- The borrower (you)
- Memory trick
- -ee is the lender, -or is the borrower
- Seen on
- Mortgage deeds and legal paperwork
Key takeaways
- The mortgagee is the lender, usually a bank or building society, that provides the loan.
- The mortgagor is the borrower, the homebuyer who takes out the mortgage and puts up the property as security.
- An easy way to remember: the word ending in "-ee" is the lender, and the one ending in "-or" is the borrower.
- You will see both terms on your mortgage deed and legal documents, rather than in everyday conversation.
What is a mortgagee?
The mortgagee is the lender in a mortgage: the bank, building society or other lender that gives you the money to buy your home. In return, they take a legal charge over the property as security. If the borrower does not keep up repayments, the mortgagee has the right to repossess and sell the property to recover what they are owed.
The mortgagee earns interest as the loan is repaid, and their charge is registered against the property until the mortgage is cleared.
What is a mortgagor?
The mortgagor is the borrower: you, the homebuyer. As the mortgagor you grant the mortgage over your property to the lender as security for the loan. You keep legal ownership and the right to live in the home, subject to the lender's charge, and you have the "equity of redemption", meaning the right to get the property back free of the mortgage once you have paid it off.
An easy way to remember which is which
The two words trip people up constantly, so here is the trick:
- -ee ends in "lender"? Think of it the other way: the party the loan comes from is the mortgagee.
- -or is the borrow-or. The one who borrows is the mortgagor.
Or simply: the "-or" owes. The borrower (mortgagor) owes the money to the lender (mortgagee).
Where you will see these terms
You will rarely hear "mortgagee" and "mortgagor" in day-to-day chat with a lender or broker, who will just say "lender" and "borrower". Where they appear is in the legal paperwork: the mortgage deed, the Land Registry entries, and formal correspondence. Knowing which is which means you can read those documents with confidence rather than second-guessing.
Frequently asked questions
Is the mortgagee the buyer or the bank? The bank. The mortgagee is the lender. The buyer is the mortgagor.
Who is the mortgagor on a joint mortgage? All the borrowers. If two people take out a mortgage together, they are both mortgagors, jointly responsible for the loan.
What is the difference between a mortgagee and a mortgage broker? The mortgagee is the lender that actually provides the loan. A broker is an intermediary who helps you find and arrange a mortgage, but does not lend the money themselves.
Getting to grips with the jargon? See the simple definition of a mortgage and where the word mortgage comes from, then work out what a loan would cost with the mortgage calculator.
