7 interesting facts about mortgages

The concept and principles of mortgage lending have become firmly entrenched in our lives. However, few people know that mortgages were first mentioned as early as the 6th century B.C., and in Russia the first loan for the construction of housing was issued in the 18th century. And can you guess what, in addition to residential and non-residential space you can take on a mortgage? Let's talk about 7 interesting facts about mortgages.

Did you know that Nurotheza in Greek means a pillar or a stand. It was the kind of pillar that was placed on the border of the land that was offered by the borrower to the lender as collateral, and on this pillar an inscription was made that the property secured the loan. Later, the word "Mortgage" began to denote a pledge for the purchase of real estate and all over the world. The concept was introduced by the Greek reformer Archon Solomon in the 6th century B.C.

It was Germany that became the first country in Europe to make mortgages legal, and created the relevant rules to regulate this credit. This happened in the 14th century. France legislated mortgages two centuries later.

In Russia, the concept of mortgages appeared as early as the 18th century under Empress Elizaveta Petrovna. At that time, the Bank of the Gentry was organized, which operated from 1754 for only 12 years. Why so little? We don't know 🙂 It's not an easy thing to pay off a mortgage.

Mortgage in modern Russia appeared relatively recently: the Agency for Housing Mortgage Lending was formed in 1997, and the Federal Law № 102-FZ "On mortgage (pledge of real estate)" a year later. It is clear that in Soviet times we did not have to talk about it, as well as other loans, however - apartments were given by turn for work experience, so we are only getting used to these conditions.

According to surveys in 2019, more than one-third of residents are in the process of paying off a mortgage, which means about 37% citizens have been in this relationship with banks. At the same time, the traditional age of the borrower is 30-40 years old. That's understandable; by that age, both career and salary already allow one to be financially responsible. But this is not certain.

Did you know that there is an option today for secure mortgages during construction? Exrow accounts are used for this purpose, when the developer receives the money only after construction is completed. This is the service first provided in 2019 for the construction of a large, apartment building in Voronezh. Given how often builders today delay delivery or don't finish construction at all, it's good to have bank protection.

A mortgage on a house, an apartment or a summer house is already a familiar phenomenon to us. But did you know that such a loan can be taken out on a ship or an airplane, a boat or a catamaran? And even on space objects. Take a rocket and fly 🙂