first mortgage: meaning, definition, pronunciation and examples
B2Formal, Financial, Legal
Quick answer
What does “first mortgage” mean?
A primary loan secured by real estate property that has priority over all other liens or claims on that property in the event of default or foreclosure.
Audio
Pronunciation
Definition
Meaning and Definition
A primary loan secured by real estate property that has priority over all other liens or claims on that property in the event of default or foreclosure.
In business contexts, it can refer to the senior-most debt instrument in a company's capital structure secured by assets. Colloquially, it may signify a major, long-term financial commitment.
Dialectal Variation
British vs American Usage
Differences
The core legal and financial concept is identical. The process and specific regulatory frameworks (e.g., 'deed of trust' variations in some US states) differ, but the term 'first mortgage' is standard in both.
Connotations
In both varieties, it carries connotations of significant debt, home ownership, and primary financial responsibility. In UK contexts, it is strongly associated with the residential property ladder.
Frequency
Equally common in formal financial/legal contexts in both regions. Slightly more frequent in general US media due to higher volume of mortgage-related advertising and news.
Grammar
How to Use “first mortgage” in a Sentence
[Lender] holds a first mortgage on [Property][Borrower] took out a first mortgage with [Lender]The first mortgage is secured against [Property]Vocabulary
Collocations
Examples
Examples of “first mortgage” in a Sentence
noun
British English
- They redeemed the first mortgage early to avoid early repayment charges.
- The building society which holds the first mortgage must consent to any lease.
American English
- We refinanced our first mortgage to get a lower interest rate.
- In foreclosure, the first mortgage gets paid before any home equity line.
Usage
Meaning in Context
Business
Refers to the senior-most secured debt on a company's balance sheet, e.g., 'The asset-backed loan is structured as a first mortgage on the plant.'
Academic
Discussed in law and economics papers regarding property rights, foreclosure priority, and capital structure.
Everyday
Used when discussing home buying, e.g., 'Our first mortgage takes up a big chunk of our monthly income.'
Technical
Precise legal term in property deeds and loan agreements defining priority in collateral claims.
Vocabulary
Synonyms of “first mortgage”
Strong
Neutral
Weak
Vocabulary
Antonyms of “first mortgage”
Watch out
Common Mistakes When Using “first mortgage”
- Using 'first mortgage' to mean 'my initial mortgage' (as in first-time buyer) rather than the legally senior loan. Confusing it with 'fixed-rate mortgage'. Incorrectly saying 'first mortgage on the car' (used for real property, not chattels).
FAQ
Frequently Asked Questions
No, on a single property, there can only be one 'first' or senior mortgage. A subsequent loan is a second or junior mortgage.
In essence, yes, particularly in UK terminology. A 'first legal charge' is the standard way a first mortgage is recorded on the title.
No. 'First' refers to its legal priority, not the order in which you obtained loans. You could refinance your first mortgage with a different lender; the new loan would still be the first mortgage.
The first mortgage remains in first priority position. The second mortgage is subordinate. The first mortgage lender's rights are unaffected, though some first mortgages may require notification or consent for a second loan.
A primary loan secured by real estate property that has priority over all other liens or claims on that property in the event of default or foreclosure.
First mortgage is usually formal, financial, legal in register.
First mortgage: in British English it is pronounced /ˌfɜːst ˈmɔːɡɪdʒ/, and in American English it is pronounced /ˌfɜrst ˈmɔːrɡɪdʒ/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “The bank has first dibs (informal) via the first mortgage.”
Learning
Memory Aids
Mnemonic
Think 'FIRST in line' to be paid from the sale of the house if the borrower fails to pay.
Conceptual Metaphor
A CLAIM OF PRIORITY IS BEING FIRST IN LINE. A FINANCIAL BURDEN IS A WEIGHT.
Practice
Quiz
What is the defining characteristic of a first mortgage?