blanket mortgage

Definition

A single loan that covers multiple properties, popular with developers and investors who find getting individual mortgages tedious. It's the financial equivalent of buying in bulk, often with a release clause letting you sell properties individually.

Example Usage

The investor used a blanket mortgage to finance all five rental properties, streamlining the paperwork and getting a better interest rate.

Origin

Banking terminology from the early 20th century, 'blanket' metaphorically covering multiple assets under one agreement

Fun Fact

Blanket mortgages are particularly useful for developers subdividing land, as properties can be released from the loan as individual lots sell.

Source: Commercial lending standards

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