Standard Charges vs. Collateral Charges
The type of charge registered against your home affects how easily you can switch lenders or borrow more later.
A mortgage charge is the legal document registered against your property's title to secure your loan. There are two types — standard and collateral — and the difference matters most when you want to switch lenders or borrow additional funds.
Standard charge
A standard charge registers the exact amount of your mortgage and its specific terms. Because the details are fixed and transparent, most other lenders will accept an assignment of a standard charge with little or no cost when you switch at renewal.
Collateral charge
A collateral charge can secure more than one loan with the same lender — a mortgage and a line of credit, for example — and can be registered for more than your actual mortgage amount. That makes it easier to borrow more later without new legal paperwork, but it also means most other lenders won't accept a straight transfer: you'll typically need to discharge it and register a new mortgage elsewhere, which comes with legal and registration costs.
| Standard charge | Collateral charge | |
|---|---|---|
| Registration amount | Matches your actual mortgage | Can be higher than your actual mortgage |
| Borrowing more later | Usually needs a new charge | May not need a new charge, if within the registered amount |
| Switching lenders at renewal | Often accepted at little or no cost | Often requires discharging and re-registering |