Memorandum of Priority – things to remember

This page sets out the requirements for a mortgage priority instrument (also known as a Memorandum of Priority) (MP) lodged by e-dealing.

A Memorandum of Priority (MP) lodged by e-dealing must be certified and signed by both the mortgagor’s and mortgagee’s representatives.

Authority will therefore be required from:

  • the mortgagors (the registered owners) by Authority and Instruction form (A&I), and
  • any mortgagee under a mortgage that, on registration of the mortgage priority instrument, will rank after a mortgage over which it had priority immediately before registration of the instrument.

The MP instrument should only include those mortgages/encumbrances that are affected by the change in priority. Note that:

  • if an encumbrance is first priority and is not changing priority, then the encumbrance should not be entered in the MP, and
  • if there are three encumbrances or mortgages and the first and third priority are changing priority, the second priority will also need to be entered in the MP as it may be affected by the conditions or priority amount of the mortgage gaining priority.

An authority is required from the mortgagee gaining priority as this replaces the solicitor ‘signing correct’ the instrument on behalf of the mortgagee, in the paper environment.

Consent of a submortgagee must be obtained (where the head mortgagee is losing priority) - see s102(6) LTA 2017.