Typically, a remortgage replaces one outstanding balance with another of the same value but with a more attractive interest rate or repayment term. Sometimes, people will use a remortgage to increase the level of their borrowing, taking the excess as cash.
This can blur the lines between a remortgage and a loan, with many believing that there is no difference between the financial products. However, a loan is usually used when someone wishes to borrow money, above and beyond any existing financial commitments or debt.
The easiest way to distinguish between a remortgage and a loan is that a loan need not be secured against your property, whilst a mortgage always is.