Remortgage

Part of speech: verb

Definitions

  1. To obtain a new loan on a property that replaces an existing mortgage | To refinance an existing mortgage by taking out a new loan typically at a different rate or term | To secure a different mortgage on the same property usually to access better terms or funds
  2. To take out a new loan secured against a property while discharging the previous mortgage in order to possibly obtain more favorable conditions or lower interest rates
  3. To refinance an existing mortgage by acquiring a new loan on the same property, often aimed at minimizing monthly payments or accessing additional capital

Etymology: The concept behind this verb revolves around the idea of taking out a new mortgage on a property that already has one. Its formation is quite straightforward, combining the prefix "re-" with the noun "mortgage." The prefix "re-" originates from Latin, meaning "again" or "back," signaling repetition or a return to a previous state. This signals that the action involves doing something once more or anew. The root "mortgage" itself comes from Old French "morgage," which appeared in English around the late Middle Ages. This term originally combined "mort-" meaning "dead" and "gage" meaning "pledge" or "security," reflecting the idea that the pledge dies either when the debt is paid or the property is taken through default. So, "remortgage" essentially means to pledge the property again under a new or modified loan agreement. This verb began to be used as financial systems grew more complex and borrowers sought to refinance or alter their existing home loans. Typically, this involves replacing the old mortgage with a new one, often to secure better terms or to access equity. The term likely entered English usage in the 19th or early 20th century, coinciding with the expansion of mortgage markets and consumer credit. By blending a classical prefix with a Middle English financial term, this word neatly captures the recurring nature of mortgage agreements in property finance. Its usage reflects a practical financial maneuver rather than an abstract concept, firmly rooted in the legal and economic practices surrounding homeownership.

Synonyms: refinance, restructure, reloan, reborrow, recredit