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Finance

Maximum mortgage: what it is and what it is used for

In our Mortgage School, we've discussed the different types of mortgages available on the market, as well as other concepts related to home financing. However, in this post, we'll talk about a term unfamiliar to many: the maximum mortgage , also known as a floating mortgage or global mortgage.
Updated: 17 JUN 2026
PUBLICATION DATE: 17 NOV 2024

Summary

A maximum mortgage is a type of mortgage designed to secure multiple obligations simultaneously. These obligations don't need to exist at the time the mortgage is established, nor do their amounts need to be specified. What is indicated is a maximum amount that the mortgage liability can reach. This reduces the cost of setting up multiple mortgages or loans, one for each obligation held with the same financial institution.

Why is the maximum mortgage used?

The main advantage of a maximum mortgage is cost savings, as it eliminates the need to modify the existing mortgage to include new properties or apply for a new mortgage, which would incur additional expenses. Furthermore, this type of mortgage allows for savings on notary fees, registration fees, and Property Transfer Tax and Stamp Duty.

It is currently used as a financial instrument that allows flexibility in the mortgage market, being used in complex financing and refinancing operations.

Let's look at an example:

Let's assume that Mr. S has contracted these financial products with bank B:

A loan of 12,000 euros

A current account credit for an amount of 40,000 euros

A commercial discount line with a limit of 60,000 euros

The client has provided his personal assets as collateral for all these financial products.

Bank B and Mr. S may wish to provide greater security for these transactions by formalizing a maximum mortgage. This maximum mortgage creates a lien on Mr. S's property, guaranteeing all three previous transactions simultaneously for 5 years. In this case:

For the loan of 12,000 euros, the amount of Mr. S.'s obligation is clear.

In the case of credit and commercial discount lines, the amount of the debt cannot be known in advance. We can only know its maximum limit.
 

The UCI blog posts cover current issues that are intended to be useful to our readers. However, it is possible that some of the less recent posts contain out-of-date information, so it is necessary that you always check the publication date of the post.

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