A deed altering the priorities of two mortgages limited the amount of the prior loan to a capital sum together with interest. The party with priority claimed to be entitled to compound interest, and the second resisted it. The court said that the word ‘interest’ must refer to that payable under the loan agreement secured by the deeds, and not to interest generally, and therefore the compounded interest was given priority.
Times 22-Jun-2000, Gazette 29-Jun-2000
England and Wales
Land, Financial Services
Updated: 10 April 2022; Ref: scu.90452