Mortgage Authorization Letter

A mortgage is a legal agreement that enables a person to get a loan from a bank on interest while giving the bank the title of the debtor’s property in return. The title is shifted back to the debtor upon complete payment of the debt. It is a very common money lending procedure.

In order to apply for the mortgage, a proposal letter is written listing the details of the property the debtor wishes to mortgage against. It also includes the names and contact details of the people who know the person applying for a mortgage and are willing to act as his guarantors. The debtor has to give his credit details proving that he has a stable source of income and would be able to pay the loan back.

A mortgage authorization letter is written when the debtor wants to allow a trusted third party to have access to their mortgage loan repayment information and options. Sometimes when people get married or enter a business partnership they want to share their mortgage with their spouse/business partner.

Another scenario may be when they feel that they will not be able to repay their loans due to some financial crisis or health issue, they may bring in a third party who can buy their mortgage and pay the remaining amount.

As these are formal letters addressing a financial issue, they must be written very carefully and in a formal tone. The letter should not be unnecessarily long nor should the letter include unnecessary information but all relevant details must be included.

It must clearly state who is being authorized with what and for how long. As these are addressing a financial situation, they need to be proofread very carefully.

Spelling or grammatical mistakes would leave a very bad impression. The information shared must be accurate and all the receipts and any other proofs or important documents should also be attached.

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I took out a mortgage from your bank on [date] for starting home construction. As you know from my record that I have been regular in my repayments and have already paid the due amount but due to a recent development I feel that it is important that I share my mortgage with my son.

Recently I have been diagnosed with [disease name]. Due to the severity of my symptoms, my doctor has advised me to go for [name] surgery. After the surgery, the doctors would decide on a further course of action. I am told that I have a very high chance of making a full recovery but I do not want to take a chance.

I do not want my disease to delay the repayment schedule, so I am going to share my mortgage with my son. You are hereby authorized to share all details of my mortgage with him as he will be handling all financial issues from now onwards till I get better. I am sharing his contact details below.

I want to assure you that you will not face any inconvenience or delay in the repayments as he is a very responsible person and I am sure that everything will keep running smoothly. If you have any queries, please feel free to contact me any time before [date] as that is the date of admission to the hospital.

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I took out some loan from your bank against my house as security on [date]. I have already made three repayments and as you know from my record I have been regular in my repayments. However, I recently got married and I want to include my wife [name]’s in my mortgage. I authorize you to share my payment details and any other information related to my mortgage with her.

I assure you that you would not face any issue with repayments in fact, as now we would be sharing the installment amount we intend to repay the loan sooner. I am sharing the details of my mortgage account for your convenience.

Looking forward to your cooperation.

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