Definition: The term "mortgage" has a long history, originating in the late 19th century when it was first used to refer to an instrument that secured debtors against assets they might lose. It is generally assumed that this originated with the English financial institution known as the Bank of England (Bank of England), which was one of the main financiers of the Industrial Revolution in Europe, and is often referred to as "The Bankers' War". In the late 19th century, the mortgage became a specialized form of debt that had been used for years by individuals to secure their property against debts. The term "mortgage" was adopted because it implied security - this is why the lender agreed to pay back the money borrowed from them on a set schedule. The term "mortgage" has become widely recognized and understood in modern times as a general financial tool, with many definitions coming into being over time. It can refer to a variety of types of loans or mortgages: for example, a home loan (which typically involves financing an individual's house), a personal loan where the lender is borrowing money from you personally, a car loan, etc. The loan amount may be specified, but if not, it is considered as a "loan" rather than a mortgage. In some cases, there may also be separate charges for fees or other costs associated with the loan (such as mortgage insurance). It can also refer to a type of security that requires the borrower to make regular payments. Some examples of how the word 'mortgage' is used include: - The term "mortgage" was first used in the mid 19th century by the Bank of England, which was one of the main financiers of the Industrial Revolution. It meant borrowing from a lender who had pledged assets to be lent back to the borrower after the loaned amount was repaid. - In modern times, mortgage loans are often secured against real estate such as houses or businesses. The loan amount may include an interest rate and other fees, but it is considered a type of security rather than a loan itself. - In some contexts, "mortgage" can also refer to a specific type of personal loan where the lender requires the borrower to make regular payments. Overall, the word 'mortgage' has a long history that is now widely recognized and understood as an important part of financial institutions like banks, lending, and home mortgages.

mortgage etymology