Which of the following describes collateral security in a mortgage context?

• A. The property being bought is the only security.
• B. A guarantor's personal pledge forms part of the security.
• C. The guarantor is the sole security.
• D. Another asset provided as security in addition to the mortgage.

Answer: (D)

Collateral security means pledging an extra asset to back the loan, in addition to the primary security of the mortgaged property. The home provides the main protection for the lender, but collateral security adds another layer of protection by giving recourse to other assets if the borrower defaults. This can include cash, shares, another property, or other valuable assets. The other descriptions don’t fit because they describe using only the property as security, or a personal guarantee, which is a different form of protection rather than an additional asset pledged as collateral.