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Remortgaged Meaning: Definition, Examples, and Translations

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remortgaged

[riหหˆmษ”หษกษชdส’d ]

Definition

Context #1 | Verb

financial transaction

To remortgage means to take out a new mortgage on a property, usually to replace the existing mortgage. This often occurs when a homeowner seeks to secure a better interest rate or to release equity from their home. The process generally involves a lender evaluating the propertyโ€™s equity and the borrower's financial status. Homeowners may choose to remortgage for various reasons, including debt consolidation, home improvements, or to reduce monthly payments.

Synonyms

re-mortgage, refinance, refinancing.

Examples of usage

  • They decided to remortgage their house to pay for renovations.
  • She remortgaged her home to take advantage of lower interest rates.
  • After several years, he chose to remortgage to access some of the equity.
  • Many homeowners are considering remortgaging due to the current economic climate.

Translations

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Interesting Facts

Historical Origins

  • The word comes from 'mortgage', which is derived from Old French, meaning 'dead pledge', indicating that the obligation ends when the debt is paid.
  • The concept of remortgaging became prominent in the 20th century as the housing market evolved and consumers sought better financial options.

Finance

  • Many homeowners choose to remortgage to take advantage of lower interest rates, which can save them significant amounts over time.
  • In some countries, remortgaging can provide funds for home improvements, allowing owners to increase their property's value.

Legal Aspects

  • Remortgaging usually requires a new valuation of the property to determine its current market value, ensuring the loan is appropriately secured.
  • The legal process typically involves paperwork and may incur fees, which are important for planning and budget adjustments.

Statistics

  • In the UK, remortgaging hit a peak in 2021 due to attractive interest rates and changing market conditions.
  • Research shows that many homeowners are unaware of the potential savings from remortgaging, leading to opportunities being missed.

Cultural Impact

  • In popular media, the concept of remortgaging often appears in stories about personal finance and the struggles of home ownership.
  • TV shows focused on home improvement frequently discuss remortgaging as a way to finance renovations and add value to properties.

Origin of 'remortgaged'

The term 'remortgage' combines the prefix 're-', which denotes repetition or doing something again, with 'mortgage', a word derived from Old French 'mort', meaning 'dead', and 'gage', meaning 'pledge'. The original meaning of a mortgage was a pledge that became void (or 'dead') if the debt was paid off; conversely, it remained in force until the debt was settled. The practice of remortgaging has gained popularity in the UK since the 1980s, largely due to the rising property market and the financial benefits associated with changing mortgage terms. As homeowners seek to optimize their financial situations, remortgaging has become a common strategy in personal finance management.

Word Frequency Rank

With rank #43,022, 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.