Updated: Apr 25, 2023

A legal agreement conveying conditional ownership of assets as security for a loan and becoming void when the debt is repaid. Building societies (UK) and insurance companies (mortgages) loan a proportion of the purchase price of houses to individuals or companies (mortgagors), the property being mortgaged to the lender until the loan is repaid.

Reference: The Penguin Dictionary of Economics, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.