The first thing to understand about caveat loans is that they are not mortgage loans. While sometimes referred to as a ‘second mortgage’ because they are secured against a property, they are different in structure and terms to traditional mortgage loans.

In simple terms, mortgage refinancing is the process of taking out a new mortgage loan to repay your existing loan. In some cases, it might be with your current lender, but more often, it involves moving your loan to a new lender.