Glossary

Deed of priority

What a deed of priority is, why lenders sign one when more than one facility sits over the same security, and what it settles.

A deed of priority is an agreement between two or more secured lenders holding interests over the same asset or entity, setting out the order in which each is repaid and how they will act if the borrower defaults, irrespective of what the underlying registration order might otherwise suggest. It is standard wherever a second mortgage, a caveat or a general security agreement sits behind another lender's existing security, since the second lender needs the first's agreement on how a conflict or enforcement action would be handled. For a borrower, the deed of priority does not change the loan terms directly, but its existence and terms are typically a condition precedent to the junior facility settling at all. Lenders negotiate these deeds carefully, since the terms — particularly standstill periods and notice obligations before either lender can enforce — materially affect each party's practical position if things go wrong.

Related

Second mortgages · Priority deed · Intercreditor

Confidential enquiry

Indicative terms in three minutes

Business-purpose and investment finance only. No credit check at this stage.

Confirm what the finance is for

Explore

Related finance.

By borrower type

Explore

Not quite the right product? Every loan type we arrange.

Most scenarios can be structured more than one way. Browse the alternatives, or tell us the situation and we'll recommend the structure.

Business cash flow

Property-backed

Development

Situational

Rural & international

All loan types →