what
is a
mortgage
A mortgage is a method of
using
property as
security for
the payment
of a debt.
In many
countries it
is normal
for home
purchases to
be funded by
a mortgage.
in countries
where the
demand for
home
ownership is
highest,
strong
domestic
markets have
developed,
for instance
like in the
united
Kingdom.
The term
mortgage
refers to
the legal
device used
for this
purpose, but
it is also
commonly
used to
refer to the
debt secured
by the
mortgage,
the mortgage
loan. In
most
jurisdictions
mortgages
are strongly
associated
with loans
secured on
real estate
rather than
other
property
(such as
ships) and
in some
cases only
land may be
mortgaged.
Arranging a
mortgage is
seen as the
standard
method by
which
individuals
and
businesses
can purchase
residential
and
commercial
real estate
without the
need to pay
the full
value
immediately.
See mortgage
loan for
residential
mortgage
lending, and
commercial
mortgage for
lending
against
commercial
property.
back to home page
