Property law

Part of the common law series

Acquisition

Gift& Adverse possession& Deed Conquest& Discovery& Treasure Trove Lost mislaid and abandoned property Alienation& Bailment& License

Estates in land

Allodial title& Fee simple& Fee tail Life estate& Defeasible estate Future interest& Concurrent estate Leasehold estate& Condominiums

Conveyancing

Bona fide purchaser Torrens title& Strata title Estoppel by deed& Quitclaim deed Mortgage& Equitable conversion Action to quiet title& Escheat

Future use control

Restraint on alienation Rule against perpetuities Rule in Shelleys Case Doctrine of worthier title

Nonpossessory interest

Easement& Profit Covenant running with the land Equitable servitude

Related topics

Fixtures& Waste& Partition Riparian water rights Lateral and subjacent support Assignment& Nemo dat Property and conflict of laws

Other common law areas

Contract law& Tort law Wills trusts and estates Criminal law& Evidence

v&& d&& e

A mortgage is the transfer of an interest in property to a lender as a security for a debt - usually a loan of money. While a mortgage in itself is not a debt it is the lenders security for a debt. It is a transfer of an interest in land from the owner to the mortgage lender on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed. In other words the mortgage is a security for the loan that the lender makes to the borrower.

This comes from the Old French "dead pledge" apparently meaning that the pledge ends either when the obligation is fulfilled or the property is taken through foreclosure. ¹

In most jurisdictions mortgages are strongly associated with loans secured on real estate rather than on other property and in some jurisdictions only land may be mortgaged. A mortgage is the standard method by which individuals and businesses can purchase real estate without the need to pay the full value immediately from their own resources. See mortgage loan for residential mortgage lending and commercial mortgage for lending against commercial property.

The cost to the borrower is measured by the annual percentage rate which is an effective annual rate of interest and fees paid by the borrower.

In many countries though not all or it is normal for home purchases to be funded by a mortgage. Few individuals have enough savings or liquid funds to enable them to purchase property outright. In countries where the demand for home ownership is highest strong domestic markets have developed notably in Ireland Spain the United Kingdom Australia and the United States.