GlossariesGCSE GlossariesGCSE Business GlossaryMortgage

Mortgage - GCSE Business Definition

Reviewed by: Steve Vorster

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A Mortgage is a long-term loan used to purchase property or real estate and is secured against the value of that property. When a person takes out a mortgage, they borrow money from a financial institution to buy a home. They agree to repay the loan, plus interest, over a set period, often 25 years. The property acts as collateral, so if the borrower fails to meet the repayment terms, the lender can take possession of the home through a process called foreclosure. Mortgages are crucial for individuals who want to buy a house but cannot afford to pay the full price upfront, making homeownership more accessible. Understanding mortgages helps students studying GCSE Business grasp the fundamentals of personal finance and long-term financial planning.

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Steve Vorster

Reviewer: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.

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