Ship are being mortgaged when the owner gets a loan from a bank against the ship value, in this case the ship cannot be sold or scrapped without written permission from the bank

The flag issues mortgage certificate according to the bank loan agreement signed with the ship owner

Mortgage certificate is issued provisionally first and it is called “Preliminary mortgages certificate” and then full term mortgage certificate is issued

The only difference between mortgages and registration is that the owner has the option to get preliminary first and then full term or he can wait until full term is issued

Waiting until full term is issued without getting preliminary mortgage saves customer the cost of the preliminary

But as the banks always request the mortgage certificate from the flag prior to paying the loan amount to owner, so most customers request preliminary first

Full term mortgages certificate takes about two months to be issued by the flag

Required documents for mortgage certificate

• Mortgage excerpts (Exactly as registration application, it serves as application for the mortgage certificate)
• Copy of bank loan agreement
• Passport copy of the ship owner