Economics B A-Level
Sub-prime mortgages
What Sub-prime mortgages means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Sub-prime mortgages
Check what you remember
Read the wording for your board, then hide it and explain Sub-prime mortgages in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
Loans issued to borrowers with poor credit histories, which led to massive defaults when interest rates rose.
Topics that use Sub-prime mortgages
- The Global Financial Crisis (Pearson Edexcel A-Level)
Related terms
- Consumer protection
- Financial stability
- Moral hazard
- Collapse of lending to businesses
- Speculation and market bubbles
- Stress tests
Using Sub-prime mortgages in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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