What does mortgagor mean?
A mortgagor is a person or organization that borrows money by granting a mortgage, with property offered as security for the debt. This formal legal term identifies the borrower, who retains possession of the property but gives the lender legal protection if the agreed payments are not made. A mortgagor may be an individual homeowner, a company, or another organization, and several people who jointly own property may each act as mortgagor. The term is particularly useful when precise legal language is required because it distinguishes the borrower from the mortgagee, the lender who holds the security. In everyday discussion, “homeowner” or “property owner” often conveys the same practical idea, although it may not specify the mortgagor’s formal role in the mortgage transaction. The word is understood in both British and American legal usage.
nounA mortgagor is a person or organization that grants a mortgage by borrowing money against property offered as security.
- A person or organization that grants a mortgage by borrowing money secured on property.
"The mortgagor must continue making payments under the terms of the mortgage agreement."
"Each co-owner became jointly and severally liable as a mortgagor under the agreement."
"The report listed the company as the principal mortgagor on several commercial properties."
The standard plural is “mortgagors,” commonly used when referring to several property owners who have granted mortgages.
"The lenders notified all mortgagors of the change in payment arrangements."
A mortgage has two sides: the mortgagor pledges the property, while the mortgagee holds the legal claim.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does mortgagor come from?
Mortgagor was formed in English by adding the agent-forming suffix -or to mortgage. Mortgage belongs to the Anglo-French legal vocabulary inherited by English, and related forms such as mortgagee and mortgager use the same base to distinguish the borrower from the lender or to name the activity of mortgaging property.
How mortgagor is actually used
This is primarily a formal legal and financial term. It is especially common in mortgages, security agreements, and property-law documents. In ordinary conversation, a person in this role is more often described simply as a homeowner or property owner borrowing against the property.
Easily confused with mortgagor
The mortgagor is the borrower who pledges property, while the mortgagee is the lender who receives that security.