English Mortgage :

According to Section 58(e) of the Transfer of Property Act, an ‘English Mortgage’ is a transaction in which, the mortgagor binds himself ‘to repay the mortgage money on a certain date and transfers the mortgaged property absolutely to the mortgagee, but subject to the provision that he will retransfer it to the mortgagor upon payment of the mortgage money as agreed’.

Essential features of English Mortgage

(i) It provides for a personal covenant to pay on a specified date notwithstanding the absolute transfer of the property to the mortgagee.

(ii) There is an absolute transfer of the property in favour of the mortgagee.

However, such absolute transfer is subject to a provision that the property shall be re-conveyed to the mortgagor in the event of the repayment of mortgage money.

(iii) The mortgagee can sue the mortgagor for the recovery of the money and can obtain a decree for sale.