Private mortgage
A private mortgage is a type of mortgage loan whereby funds can be sourced from another person or business rather than borrowing from a bank or other finance provider.[1] The private lender could be family, friends or others with personal relationships to the borrower.[2]
Private mortgages were once commonly put in place by solicitors in rural locations throughout the United Kingdom, where the solicitor put borrowers and lenders together and protected the arrangement by using the borrower’s property as security.
With increases to competition and regulation introduced during the 1980s under UK Prime Minister, Margaret Thatcher, private mortgages became less commonplace - their prominence has however returned in recent years due to the decline in traditional means of finance.[3]
References
[edit]- ^ "Pros and Cons of a Private Mortgage". Archived from the original on 2015-09-06. Retrieved 2015-10-13.
- ^ Lauren Nowacki (August 23, 2022). "Private Mortgage: What You Should Know Before You Borrow". Rocket Mortgage. Archived from the original on December 13, 2022. Retrieved December 13, 2022.
- ^ "Going private can solve your mortgage blues". Independent.co.uk. 23 October 2011. Archived from the original on 25 August 2017. Retrieved 8 September 2017.