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Mortgage Modification Form for the United Kingdom

Mortgage Modification Form Template for England and Wales

A Mortgage Modification Form under English and Welsh law is a legal document that amends the terms of an existing mortgage agreement. It enables lenders and borrowers to formally modify specific aspects of their mortgage arrangement, such as payment terms, interest rates, or loan duration. The document must comply with FCA regulations, the Law of Property Act 1925, and other relevant financial services legislation in England and Wales.

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What is a Mortgage Modification Form?

The Mortgage Modification Form is utilized when parties need to alter the terms of an existing mortgage agreement in England and Wales. Common scenarios include financial hardship requiring payment restructuring, interest rate adjustments, or term extensions. The document ensures compliance with regulatory requirements while protecting both lender and borrower interests. It includes details of the original mortgage, specific modifications being made, and maintains the security of the original agreement while implementing the agreed changes.

What sections should be included in a Mortgage Modification Form?

1. Parties: Details of lender and borrower(s)

2. Background: Original mortgage details and reason for modification

3. Definitions: Key terms used in the modification agreement

4. Details of Modification: Specific changes being made to the original mortgage terms

5. Effect on Original Mortgage: Statement of which original terms remain in force

6. Execution: Signature blocks and witnessing requirements

What sections are optional to include in a Mortgage Modification Form?

1. Payment Schedule: Details of new payment terms and schedule - used when modifying payment amounts or schedules

2. Interest Rate Changes: Modified interest rate terms - used when changing interest rates

3. Term Extension: Changes to mortgage duration - used when extending or reducing the mortgage term

4. Additional Security: Details of any new security being provided - used when additional security is required

What schedules should be included in a Mortgage Modification Form?

1. Schedule 1 - Original Mortgage Details: Copy or summary of original mortgage terms

2. Schedule 2 - New Payment Schedule: Detailed breakdown of modified payment structure

3. Schedule 3 - Property Details: Description of mortgaged property

4. Appendix A - Supporting Documents: List of documents evidencing need for modification

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Mortgage Document

Cost

Free to use
Relevant legal definitions






























Clauses

























Industries

Law of Property Act 1925: Primary legislation governing property rights, mortgages, and requirements for legal mortgages and charges in England and Wales

Financial Services and Markets Act 2000: Establishes the regulatory framework for financial services and sets requirements for regulated mortgage activities

Consumer Credit Act 1974: Provides consumer protection provisions and disclosure requirements for credit agreements including mortgages

FCA Mortgage Conduct of Business Rules: Regulatory framework setting requirements for treating customers fairly and rules on mortgage modifications and forbearance

Consumer Rights Act 2015: Legislation governing fairness of contract terms and transparency requirements in consumer contracts

UK Mortgage Credit Directive Order 2015: Post-Brexit retained EU regulations providing consumer protection measures for mortgage credit agreements

Data Protection Act 2018: Legislation governing personal data handling requirements and privacy notices, incorporating UK GDPR provisions

Unfair Contract Terms Act 1977: Provides protection against unfair terms in contracts and establishes the reasonableness test for contract terms

Teams

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