remortgage: meaning, definition, pronunciation and examples
LowTechnical/Formal
Quick answer
What does “remortgage” mean?
To take out a new mortgage on a property that is already mortgaged, usually to obtain more favourable terms, release equity, or borrow additional money.
Audio
Pronunciation
Definition
Meaning and Definition
To take out a new mortgage on a property that is already mortgaged, usually to obtain more favourable terms, release equity, or borrow additional money.
The process of switching an existing mortgage to a new lender or to a new loan agreement with the same lender, often to secure a lower interest rate, change the loan term, or access the property's increased value.
Dialectal Variation
British vs American Usage
Differences
In British English, 'remortgage' is the standard term for this process. In American English, 'refinance' (or 'refinance a mortgage') is far more common, though 'remortgage' is understood.
Connotations
In the UK, it is a neutral, technical term in financial contexts. In the US, using 'remortgage' may sound slightly British or formal; 'refinance' is the everyday term.
Frequency
'Remortgage' is significantly more frequent in British English. In American English, 'refinance' is the dominant term in both speech and writing.
Grammar
How to Use “remortgage” in a Sentence
[subject] remortgage [property] (with [lender])[subject] remortgage [property] to [infinitive phrase][subject] remortgage to secure a better rateVocabulary
Collocations
Examples
Examples of “remortgage” in a Sentence
verb
British English
- They decided to remortgage their flat in Manchester to unlock some capital.
- Many homeowners remortgage when their initial fixed-rate period ends.
American English
- They remortgaged their home in Boston to pay for their daughter's college fees.
- It might be wise to remortgage if you can secure a lower interest rate.
adjective
British English
- The remortgage process was surprisingly straightforward with their broker.
- They explored various remortgage offers before deciding.
American English
- The remortgage costs were offset by the long-term savings.
- They were reviewing remortgage options available in their state.
Usage
Meaning in Context
Business
Common in banking, real estate advisory, and personal finance sectors, e.g., 'The bank offers competitive rates for those looking to remortgage.'
Academic
Used in economics, finance, and business studies papers discussing housing markets and personal debt management.
Everyday
Used by homeowners in discussions about their finances, e.g., 'We're remortgaging to fund the kitchen renovation.'
Technical
Found in legal contracts, financial product literature, and regulatory documents pertaining to secured loans.
Vocabulary
Synonyms of “remortgage”
Strong
Neutral
Weak
Vocabulary
Antonyms of “remortgage”
Watch out
Common Mistakes When Using “remortgage”
- Using 'remortgage' as a noun where 'remortgaging' (gerund) or 'remortgage application' is more natural, e.g., 'We are considering remortgage' (incorrect) vs 'We are considering a remortgage/remortgaging' (correct).
- In American English contexts, using 'remortgage' instead of the more common 'refinance' may mark the speaker as non-native or using UK terminology.
FAQ
Frequently Asked Questions
A mortgage is a loan taken out to buy a property. A remortgage is the process of replacing an existing mortgage with a new one, usually on the same property, often to get better terms or borrow more money.
Common reasons include securing a lower interest rate, releasing equity tied up in the property for home improvements or other expenses, consolidating debts, or changing from a variable to a fixed-rate mortgage.
In essence, yes, especially in the context of property loans. 'Refinance' is the broader, more common term in American English, while 'remortgage' is specifically used for mortgages and is standard in British English.
It is more difficult. If the property value is lower than the outstanding mortgage (negative equity), lenders are unlikely to approve a remortgage. You typically need sufficient equity in the property to qualify.
To take out a new mortgage on a property that is already mortgaged, usually to obtain more favourable terms, release equity, or borrow additional money.
Remortgage is usually technical/formal in register.
Remortgage: in British English it is pronounced /riːˈmɔːɡɪdʒ/, and in American English it is pronounced /riˈmɔːrɡɪdʒ/. Tap the audio buttons above to hear it.
Learning
Memory Aids
Mnemonic
RE-MORTGAGE: Think of RE-financing your existing MORTGAGE.
Conceptual Metaphor
RESTRUCTURING DEBT (viewing a remortgage as reorganising or renewing a financial agreement for improved efficiency).
Practice
Quiz
What is the primary meaning of 'to remortgage'?