what
is a
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, or
from one
product to
another with
the same
lender.
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.
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