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Remortgage Meaning: Definition, Examples, and Translations

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remortgage

[หŒriหหˆmษ”หษกษชdส’ ]

Definition

Context #1 | Verb

mortgage agreement

Remortgage refers to the process of paying off an existing mortgage with a new mortgage, usually from a different lender. This can be done to secure a better interest rate, to borrow additional funds against the property, or to alter the terms of the loan. The remortgaging process can help homeowners save money on their monthly payments or access cash for other financial needs. It is common for people to remortgage when their fixed-rate period ends or when property values increase.

Synonyms

refinance, refinance mortgage.

Examples of usage

  • I decided to remortgage my house to get a better interest rate.
  • They opted to remortgage in order to fund their children's education.
  • After two years, I looked into remortgaging for a lower monthly payment.
  • Remortgaging can be a smart financial move if done wisely.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Financial Insights

  • Remortgaging can result in lower monthly payments by securing a loan with a lower interest rate.
  • Many homeowners remortgage to access home equity, which is the value of the home minus what is owed on the mortgage.
  • The process can also involve costs, including fees for legal services and potential early repayment charges.

Cultural Perspectives

  • In some cultures, homeownership is seen as a major milestone, making remortgaging a means of financial freedom or stability.
  • The concept of remortgaging varies globally, with some countries allowing flexible mortgage terms that adapt to economic changes.

Psychological Factors

  • The choice to remortgage often reflects individuals' desire for financial stability and security in uncertain economic times.
  • People may experience anxiety when deciding to remortgage due to concerns about long-term financial commitments.

Pop Culture

  • In various television shows and films, characters often tackle the challenges of remortgaging as part of their financial storyline.
  • Reality shows about home improvement sometimes feature remortgaging as a way to fund renovations or upgrades.

Origin of 'remortgage'

Main points about word origin

  • The term combines 're-' meaning again, and 'mortgage' which comes from the French word for 'death pledge', indicating the loan ends when itโ€™s paid off or when the borrower dies.
  • The use of 'mortgage' can be traced back to late Middle Ages legal terms in England, relating to property law.

The term 'remortgage' emerged in the late 20th century as financial markets evolved and mortgage products became more accessible. Originating from the prefix 're-', which denotes a repetition or return to a previous state, and 'mortgage', a term derived from the Old French 'mort' meaning 'dead' and 'gage' meaning 'pledge', it reflects the act of refinancing an existing mortgage agreement. Before the widespread use of remortgaging, many homeowners felt stuck with their initial mortgage terms. However, the financial deregulation of the 1980s paved the way for increased competition among lenders, which led to a variety of mortgage products, including those focused on remortgaging. This evolution has empowered homeowners to better manage their financial situations by allowing them to capitalize on lower rates or access the equity built up in their homes.

Word Frequency Rank

With rank #42,651, this word is among the least frequently used in common English. Understanding it can be beneficial for comprehensive language mastery, but it's not essential for most learners.