737. Commission or fines on default of mortgage repayment by instalments.

A loan secured by mortgage may be made payable by instalments of a specified amount covering both principal and interest1. This is usually done in the case of bank and building society mortgages2, and may be done in bills of sale3. Additional sums, whether under the name of commission4 or fines5, and prospective, but not retrospective, default interest rate increases6 may be agreed to be paid in the event of instalments being in arrear, and these will be allowed against the mortgagor in the accounts. As a second mortgagee is not in any better position than the mortgagor, commission

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