Security
The security on a loan or mortgage is the asset used to back up the loan. If you default on the loan, the lender has the right to take possession of the security and sell it to cover the outstanding loan amount.
In the case of mortgages, and personal secured loans, the security is most commonly your home, but some lenders will accept other high value assets to be used as security, provided they are valuable enough to cover the loan amount.
Examples of this include some forms of car finance, which are secured on the car itself.
Related Directory Categories: |
| A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 0-9 |
