Standard securities
The ‘standard security’ is a legal document the client signs in favour of their lender giving their personal undertaking to pay back the loan on the terms agreed, with interest.1s9 CFR(S)A 1970 It gives the lender a security over the property. The standard security is then registered in the Land Register of Scotland as a charge over the property in favour of the lender.
If the client cannot make their monthly mortgage payments, ultimately the lender has the right to enforce the standard security (referred to as ‘calling-up the standard security’), which eventually results in the client being removed from their property and the property being marketed and sold by the lender.