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.

• To take advantage of a lower interest rate
• To pay for large expenses such as a child’s education or wedding
• To pay for remodelling or expansion of your existing home
• To pay off other higher rate debts like credit cards or car loans

A remortgage loan is simply a new loan that replaces an existing mortgage.