Borrowers using bitcoin-backed mortgage offerings from Better and Coinbase should note that the pledged cryptocurrency may not remain available to them during the life of the loan. According to CoinDesk, Better Mortgage can reuse the bitcoin posted as collateral. Borrowers cannot reclaim that crypto until the main conventional mortgage has been fully repaid or refinanced. The structure links access to the pledged bitcoin to the status of the underlying mortgage, rather than allowing borrowers to retrieve the asset while the loan remains outstanding. For Bitcoin holders, this means collateral posted for the mortgage may continue to be tied up until one of those two conditions is met. The report highlights a feature of these mortgage arrangements that borrowers may need to consider when evaluating how much BTC to pledge. The information concerns the collateral terms described for the products and does not indicate any change to Bitcoin’s market price or outlook.
