Mortgage, in simple words means letting the lender take over the right of interest over a certain property which belongs to the borrower in exchange for a loan which is to be repaid over a period of time. it is important to note that the mortgage is not a part of the debt, it is only a form of a security blanket for the lender which assures him that his money will be paid to him, failing which he can claim ownership over the property. This is the basis of the pret immobilier concept.

The business of the mortgage lender is to take note of the property in question which is being offered as security. After a thorough analysis of the nature of the property, the lender decides on the amount that he will be willing to lend in return. For the time that the borrower takes to arrange for the repayment of the loan, the lender is paid a certain rate of interest every year which is decided mutually as per the simulation prêt. In such a way, the mortgage lender has a series of such borrowers who pay him interest year after year. The day the borrower clears all his debt, he is free to take back his interest in the property he provided as security.