Remortgaging Meaning: Definition, Examples, and Translations
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remortgaging
[rษชหmษหrษกษชdสษชล ]
Definition
financial process
Remortgaging is the process of paying off one mortgage with the proceeds from a new mortgage, typically on the same property. This is often done to secure a better interest rate, to access equity, or to consolidate debt. Homeowners usually remortgage to take advantage of changing market conditions or to lower their monthly payments.
Synonyms
mortgage restructuring, refinancing.
Examples of usage
- I decided on remortgaging my house to reduce my monthly payments.
- She explored remortgaging options to finance her home renovations.
- The bank offered a competitive rate for remortgaging that I couldn't refuse.
Translations
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Origin of 'remortgaging'
The term 'remortgaging' derives from the prefix 're-' implying repetition or backtracking and 'mortgage', which comes from the Old French 'mort' meaning 'dead' and 'gage' meaning 'pledge'. Originally, a mortgage was a pledge that became void (or 'dead') when a debt was paid or the property was taken through foreclosure. The evolution of home financing in the 20th century has led to the practice of remortgaging becoming common as homeowners seek to take advantage of lower interest rates or changes in their financial circumstances. Since the 1990s, remortgaging has played a significant role in the UK housing market, allowing homeowners to remain financially flexible and make their mortgage more manageable.
Word Frequency Rank
With rank #43,083, 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.