As defined under Sec. 58(e) of Transfer Of Property Act, English Mortgage may be defined as Where the mortgagor binds himself to repay the mortgage-money on a certain date, and
transfers the mortgaged property absolutely to the mortgagee, but subject to a proviso that he will re-transfer it to the mortgagor upon payment of the mortgage-money as agreed, the transaction is called an English mortgage.
It is a kind of a mortgage, where the possession of the property from the mortgagor is transferred absolutely to the mortgagee i.e the mortgagee now has the actual possession of the property till a CERTAIN SPECIFIED DATE and can retain the possession till the time the mortgagor pays back al his dues. The mortgagee can also make improvements on the land as a prudent man would have on his own discretion and any additional increments or costs shall be borne by the mortgagor. Thus, the mortgagor is liable to clear his dues and along with it, has to also pay off additional costs to the mortgagee.
A mortgage is a way to use one's real property, like land, a house, or a building, as a guarantee for a loan to get money. Many people do this to buy the home they use for mortgage: The loan provides them the money to buy the house and the loan is guaranteed by the house.
In a mortgage, there is a debtor and a creditor. The debtor is the owner of the property, while the creditor is the owner of the loan. When the mortgage transaction is made, the debtor gets the money with the loan, and promises to pay the loan. The creditor will receive money back with interest over time (usually in payments made each month by the debtor). If the debtor does not pay the loan, the creditor may take the mortgaged property in place of the loan.