Subprime mortgages are loans offered to borrowers with poor credit histories or low credit scores. These loans typically come with higher interest rates compared to prime mortgages, reflecting the increased risk lenders take when lending to less creditworthy individuals. Subprime mortgages can help people buy homes who might not qualify for traditional loans. However, subprime mortgages can lead to financial difficulties for borrowers if they cannot keep up with the higher payments. This was notably seen during the 2008 financial crisis, which was partly caused by a surge in defaults on subprime loans, impacting the entire housing market and economy.