From Barry Cash
Three times in recent months you have got 40% of the answers wrong in Mortgage Master or Mortgage Moron.
Last week, despite my sending you the correct answers you again got question 4 wrong in your response on the Letters page. The deeds to a mortgaged property are held by the mortgagee so the answer is C, not the answer provided by Peter Motson.
This is not the obvious answer but it is correct. Consider this explanation:
An employer offers employment and an employee accepts it. In the case of John Smith obtaining a loan from Acme Loans, Acme provides a loan to John to enable him to become the legal owner of the house. In return, John offers a legal charge over the house, known as a mortgage, to Acme as security for the loan.
Hence, John Smith, the mortgagor, offers a mortgage to Acme, the mortgagee, who accepts it. The mortgagee keeps the deeds.
Tailormade Financial Planning
Our thanks to Barry and others who have pointed this out. Our apologies, but it's good to know some of you are indeed well prepared for the onset of regulation!