The paper is divided into five sections. The first deals with the historical aspect of mortgage lending and the reasons which, over some 200 years, have modified the percentage of life funds applied in this way.

The second section considers the place of this type of investment in the modern portfolio—particularly in the light of changing ideas on the relation of assets to liabilities.

In the third section, the importance of the selection of suitable loans is stressed, and the general principles which should govern this discussed.

The fourth section details certain classes of security and the factors affecting transactions in each class.

In the concluding part, the author deals with the essentials of the mortgage contract.