A mortgage can only be created by way of legal charge, so the borrower will possess both the legal and equitable title however, the mortgagee will have a charge over it. He will however, NOT own the freehold etc etc. Having a charge over the property gives him certain rights, e.g.the right to sale (when it becomes exercisable), the right to possession (although this is not usually exercised unless the lender wishes to sell the property).