SPECIALIST SOLUTIONS
Remortgaging With Bad Credit
A change in your credit history since you last took out a mortgage doesn't have to stop you remortgaging. We can help you find a lender who'll say yes.
Understanding Bad Credit Remortgages
If your credit history has changed since you took out your current mortgage — perhaps a missed payment, a default, a CCJ, or a period of financial difficulty — you may be worried that your existing lender, or the high street generally, will turn down a remortgage application. This is a common concern, but it doesn’t have to be the end of the road.
Specialist lenders regularly consider remortgage applications from borrowers with adverse credit. They look at your current financial position, your payment history since the credit issue, your equity in the property, and your income — not just a credit score.
Why Remortgage With Bad Credit?
People remortgage with bad credit for a number of reasons, including: coming to the end of a fixed or introductory rate and wanting to avoid moving onto their lender’s standard variable rate; releasing equity to consolidate other debts and simplify monthly outgoings; needing funds for home improvements; or simply wanting a more suitable deal now their circumstances have changed.
Whatever your reason, the same principle applies: a credit issue in your past doesn’t automatically rule out a competitive remortgage deal.
What Lenders Look At
Equity in your home. The more equity you have, the more lender options are typically available to you, even with adverse credit.
Age and type of credit issue. A satisfied CCJ or an older default is viewed more favourably than a recent, unsatisfied one. Lenders vary in how far back they’ll look and how serious an issue they’ll accept.
Current affordability. Lenders want to see that you can comfortably afford the new mortgage now, based on your current income and outgoings.
Payment history since the issue. A clean payment record in the period since your credit issue helps demonstrate that your finances are back on track.
Remortgage FAQs
Can I remortgage if my credit has got worse since my last mortgage?
Yes, in many cases. Specialist lenders assess your current situation rather than ruling you out because of a change in circumstances. Your equity and current income matter as much as the credit issue itself.
Will I have to stay with my current lender?
Not necessarily. If your current lender won’t offer you a competitive new rate because of your credit history, we can look across the whole of the market, including lenders who specialise in adverse credit, to find a suitable alternative.
Can I use a remortgage to consolidate debt?
Yes, this is one of the most common reasons people remortgage. Releasing equity to repay other debts can simplify your monthly outgoings, though it’s important to understand the risks of securing previously unsecured debt against your home — we’ll talk this through with you.
What if I have very little equity?
It can be more challenging with low equity and adverse credit, but it’s not automatically ruled out. Speak to us for an honest assessment of your options based on your specific loan-to-value and circumstances.
Ready to Explore Your Options?
Get a free, no-obligation assessment of your remortgage options, even with active or historic credit issues.