What is a Re-mortgage ?

Dick_here

To me, a re-mortgage is when your home has gone up in value and you want to borrow more money because of that.

I'm coming to the end of a fixed rate and searching for another deal on the comparison sites it asks whether we're moving home or want a re-mortgage. To me, the answer is neither. Does a simple move to another fixed rate for the same amount of loan actually also get called a re-mortgage these days ?

Bokkens

To me, a re-mortgage is when your home has gone up in value and you want to borrow more money because of that.
Your using the wrong word for positive equity and a loan.

Yes

homer_j_3

A remortgage is the re-financing of the same property with a different lender.

You can remortgage if your house has gone down in value too, providing the equity is there.

PBA

Re mortgage is when you're moving mortgage from one company to another. You don't need to be borrowing more money, though you can if you want to. If you're borrowing more money but staying with the same lender that's additional borrowing.

The reason the comparison sites ask what you're doing is because lenders offer different deals depending on whether you're remortgaging or buying a property, due to the different legal work, survey etc required.

Dick_here

PBA wrote: »

Re mortgage is when you're moving mortgage from one company to another. You don't need to be borrowing more money, though you can if you want to. If you're borrowing more money but staying with the same lender that's additional borrowing.

Ok thanks.

But when you're staying with the same lender, for the same amount of money (i.e. one fix ends, you take another out with them), what's that called ???

dunstonh

To me, a re-mortgage is when your home has gone up in value and you want to borrow more money because of that.

That is a further advance.

Remortage is as homer_j says. Using the same lender for a new deal doesnt have a specific name but is generally called switching deals or changing offer or similar.

ThriftyBeanie

That would just be new terms on the same mortgage. No legals or survey required, but may be subject to an arrangement fee and/or a booking fee (typically for fixed deals)

Dan_Collins_2

A remortgage is a made up word really, i dont think it is in the dictionary!

Mortgage means to convey a property as security, promise to repay or to pledge to repay or something along those lines.

Remortgage is just a new mortgage on a property you already own. But to be honest you could just call it a mortgage!

You can remortgage with the same lender, The Woolwich, Gmac and a few others will do this.

We call it a remortgage so as not to confuse it with a purchase.