The equity of redemption refers to the right of a mortgagor to redeem his or her property once the debt secured by the mortgage has been discharged.
[2][3] Traditionally, the courts have been astute to ensure that the mortgagee did not introduce any artificial stipulations into the contractual arrangements to impede a mortgagor's ability to satisfy obligations and reclaim the property.
[citation needed] The tide has for some years now turned against striking down every clause in a mortgage document that might conceivably impede the right to redeem.
[5] The equity of redemption is itself recognised as a separate species of property, and can be bought, sold or even itself mortgaged by the holder.
However, in modern times, extinguishing the equity of redemption (and leaving the mortgagee with absolute title to the property) ordinarily requires a court order in most jurisdictions.