What does unencumbered property mean?

If a property is said to be unencumbered then this means that it is owned outright and does not have a mortgage.

To be owned mortgage-free there must be no charges or restrictions registered against the property title.

A property could be ‘unencumbered’ if:

• It was purchased for cash
• The mortgage has been fully paid off
• The property was inherited debt free

If you own a property outright but wish to get a mortgage to access the equity then this would be called a remortgage.

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