What is a remortgage?

Remortgage is a process by which borrower repays existing mortgage with the proceeds of a new mortgage using the same property as security. Remortgage can take place with the same lender or a different lender. People usually remortgage when their existing mortgage comes out of a discount or special rate period. Remortgage may or may not exceed the existing mortgage amount. If remortgage exceeds the existing mortgage amount, it is called Cash Out Remortgage. These days several remortgage products with different options are available in the market.