A specific form of loan granted by financial institutions for the purchase or financing of property, such as houses, flats or plots of land. What distinguishes mortgage credit from other types of credit is the fact that the property purchased acts as collateral for the loan. This means that the borrower offers the property as security to the bank. If the borrower fails to fulfil the payment obligations, the bank has the right to take possession of the property through foreclosure proceedings. Mortgages generally have longer terms compared to other types of loans and can be amortised over several decades. The mortgage interest rate can be fixed (it remains constant throughout the loan period) or variable (it can fluctuate according to the reference rate, such as Euribor).
A legal document used in property transactions, especially mortgage loans. This document is as a formal statement issued by the lender (usually a bank or financial institution) to certify that the mortgage loan has been fully paid off and that there are no more outstanding financial obligations associated with the mortgage.
Agreement in which the borrower receives financing to buy a house and the lender (usually a bank or financial institution) has a security interest in the property in case the borrower defaults on payment duties. Thus, if the borrower fails to fulfil the payment duties, the lender can take possession of the property through a foreclosure process to recover the amount owed.
Financial entity specialising in granting mortgage loans for the purchase or refinancing of real estate properties. Said institutions operate in the housing credit sector and their main focus is the financing of dwellings, houses, flats, as well as other residential properties.
It is the margin that represents the profit or financial compensation that a lender obtains by lending money.
Maximum amount that a financial institution is willing to lend to a borrower for the purchase of a certain asset, such as a house, vehicle or other good. This amount is usually calculated based on several factors, including the borrower's ability to pay, the value of the asset to be purchased and the financial institution's credit policies.