Types of Mortgages | Fusion - WeRIndia

Types of Mortgages

Types of Mortgages

Mortgage is defined as “the transfer of interest in specific immovable property for the purpose of securing the payment of money advanced by way of loan” in the Transfer of Property Act, 1882.

That means the mortgage has certain essential elements: Transfer of interest, specific immovable property and securing the payment of money advanced – these are the essential things for a valid mortgage.

Mainly six types of mortgage are there which are mentioned below:

Simple Mortgage:


  • In this mortgage, the mortgagor should have to bound himself to repay the loan.
  • He should transfer the right to the mortgagee to have the specific immovable property sold if he fails to repay the loan.
  • The possession of the property is not delivered to the lender

Mortgage by Conditional Sale:

  • Here the mortgagor should have to sell the property in certain conditions
  • If the mortgagor defaults the payment of loan on a certain date, then the sale shall become absolute or
  • If the payment is being made, then the sale shall become void or
  • If the payment is being made, then the buyer shall transfer the property to the seller

Usufructuary Mortgage:

  • This type of mortgage is not prevalent in India.
  • In this type of mortgage, the possession of the property is delivered to the mortgagee.
  • He can get rents and profits in lieu of the interest or principal.
  • He cannot sue for sale or foreclose.
  • No personal liability is incurred by the mortgagor.
  • No fixed time limit is there for the mortgage to subsist.

English Mortgage:

  • It has similar characteristics of mortgage by conditional sale.
  • But, the main difference is in this mortgage, the mortgagor binds himself to repay the money.

Equitable Mortgage:

  • Like all other mortgage types, a debt must be there.
  • The most essential character is that the deposit of the title deed should be with the lender.
  • The intention behind this deposit is that it shall be the security for the debt.

Anomalous mortgage:

The mortgage which does not fall in any of above categories by the defined characteristics of the Act is anomalous mortgage.

Image Credit: Nick Youngson CC BY-SA 3.0 Alpha Stock Images


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