The mortgage loan is a banking product that allows you, as a customer or borrower, to receive a certain amount of money (the so-called loan capital) from a credit institution (lender), in exchange for a commitment to repay that amount together with the corresponding interest, through periodic payments (the so-called quotas).

Why is it called mortgage? This ‘surname’ comes from the fact that in this type of loan the credit institution has a special guarantee for the recovery of the amount borrowed: a mortgage on a property (a house, usually) that is usually owned by the client.

All loans are collateralized by the debtor’s present and future assets. But in the case of mortgage loans, if you, for example, who is the person who has received the money, does not pay your debt, then the credit institution can have the mortgaged property sold in order to recover the amount that you have left pending payment.