- Remortgage occurs when a lender uses its rights to the collateral to engage in its own transactions, often in the hope of obtaining financial gain.
- A mortgage occurs when a borrower promises the right to an asset as collateral in exchange for funds.
- Remortgages were common until 2007, but hedge funds became much more wary of them after the collapse of Lehman Brothers and the subsequent credit crunch in 2008-09.