A Lender is an individual or a company that provides a loan to a borrower.
In the mortgage market, the lender will pay for the majority of the property purchases after the borrower pays the mortgage deposit to secure the home. The borrower will repay the mortgage in regular instalments, usually over a period of 5 to 30 years.
The key to the profitability of mortgage lenders is the interest rates that borrowers incur over time. This is what makes the mortgage market a highly profitable industry.
The property is the insurance for the mortgage. When the borrower is unable to keep up with repayments, the lender will repossess the property and the borrower may be charged expensive legal fees.