This paper describes the system of the Cambridge team submitted to the SemEval-2021 shared task on Multilingual and Cross-lingual Word-in-Context Disambiguation. Building on top of a pre-trained masked language model, our system is first pre-trained on out-of-domain data, and then fine-tuned on in-domain data. We demonstrate the effectiveness of the proposed two-step training strategy and the benefits of data augmentation from both existing examples and new resources. We further investigate different representations and show that the addition of distance-based features is helpful in the word-in-context disambiguation task. Our system yields highly competitive results in the cross-lingual track without training on any cross-lingual data; and achieves state-of-the-art results in the multilingual track, ranking first in two languages (Arabic and Russian) and second in French out of 171 submitted systems.