A 'mortgage' is the transfer of an interest in property (or the equivalent in
law - a charge) 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 lender's security for a
debt. It is a transfer of an interest in land (or the equivalent) 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 (dies) either when the obligation is fulfilled or the property is taken
through foreclosure.[{{cite book |first=Edward|last=Coke|authorlink=Edward
Coke |title=Commentaries on the Laws of England |quote=[I]f he doth not pay,
then the Land which is put in pledge upon condition for the payment of the
money, is taken from him for ever, and so dead to him upon condition, &c. And if
he doth pay the money, then the pledge is dead as to the Tenant}}] In most jurisdictions mortgages are strongly associated with loans secured on
real estate rather than on other property (such as ships) 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.
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