Remortgage

Remortgage

A remortgage (also known as refinancing) is the process of paying off one mortgage with the proceeds from a new mortgage using the same property as security. The term is mainly used commercially in the United Kingdom, though what it describes is not uniquely British. Often the purpose of "switching" is to secure a more favorable interest rate from a different lender.

The process of remortgaging does not usually involve moving home or taking out a second mortgage on the property; it is in effect the transfer of a mortgage from one lender to another. Homeowners may choose to remortgage for various reasons, including to reduce the size of repayments, to pay off a mortgage earlier, to raise capital, or to consolidate other debts.

Homeowners often mis-use the expression remortgage when they are simply switching from one product to another with the same lender; this is not a remortgage which involves the removal of one legal charge over a property and its substitution with another in favour of a new lender.

References


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Look at other dictionaries:

  • remortgage — ► VERB ▪ take out another or a different mortgage on. ► NOUN ▪ a different or additional mortgage …   English terms dictionary

  • remortgage — [spelling only] …   English World dictionary

  • remortgage — ▪ I. remortgage remortgage 2 noun [countable] FINANCE PROPERTY BANKING a second or bigger mortgage on your property, especially a house; = home equity lo …   Financial and business terms

  • remortgage — UK [riːˈmɔː(r)ɡɪdʒ] / US [ˌrɪˈmɔrɡɪdʒ] verb [transitive] Word forms remortgage : present tense I/you/we/they remortgage he/she/it remortgages present participle remortgaging past tense remortgaged past participle remortgaged to borrow more money… …   English dictionary

  • remortgage — re|mort|gage [ˌri:ˈmo:gıdʒ US o:r ] v [T] to borrow money by having a second ↑mortgage on your house, or increasing the one you have ▪ We may have to remortgage the house …   Dictionary of contemporary English

  • remortgage — v.t., remortgaged, remortgaging. * * * …   Universalium

  • remortgage — 1. verb To mortgage again. 2. noun A subsequent or additional mortgage …   Wiktionary

  • remortgage — re|mort|gage [ ,ri mɔrgıdʒ ] verb transitive to borrow more money to pay for a house or property, or change the payment arrangements of an existing MORTGAGE ─ compare REFINANCE …   Usage of the words and phrases in modern English

  • remortgage — v. mortgage again, pledge again, place again as security against a debt …   English contemporary dictionary

  • remortgage — verb take out another or a different mortgage on. noun a different or additional mortgage …   English new terms dictionary

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