A mortgage loan is a credit that is secured by a mortgage .
Types of loans
There are two types of mortgages:
- the classic acquisition loan: the mortgage acts as a guarantee for the benefit of the lender.
- the mortgage loan in the broad sense of the term: it is a financial loan whatever the object and secured by a mortgage.
The latter loan is intended for all types of borrowers with the most diverse needs. It is enough for him to possess a patrimony to give in guarantee.
Intense speculation on mortgage credit has occurred. In addition, the real estate and financial markets are often linked: the housing bubble is aggravated by the financial bubble and vice versa, as happened in Europe in the 1860sand allowed for very important work in the habitat of several capitals of the old continent.
A century later, mortgage credit was accused of contributing to the 2007-2010 financial crisis , caused by the involvement of European and US banks in credit enhancers that financed subprime mortgages by blending mortgage bonds with government bonds [ref. necessary] .