What does the Equity of Redemption allow borrowers to do?

The concept of Equity of Redemption pertains to a borrower's right to reclaim their property after defaulting on a mortgage, provided they can pay off the outstanding loan balance. It serves as a protective measure for borrowers, allowing them to repay the loan—even after missing payments—and retain ownership of the property. This right underscores the principle that, despite financial difficulties, borrowers still have an opportunity to rectify their situation and avoid foreclosure by settling their debts related to the mortgage.

Other options are not aligned with the specific rights granted under the Equity of Redemption. For instance, transferring ownership of the property would not fall under this provision, as it specifically deals with the retention of ownership post-default. Accessing home equity loans pertains to borrowing against the property while refinancing a mortgage involves altering the terms of a loan rather than reclaiming it following default. Thus, the correct answer accurately reflects the definitive purpose of the Equity of Redemption as a borrower’s right to retain their property by fulfilling their financial obligations.