Unsure how to get a remortgage with bad credit? When determining your affordability, credit history is one of the most important considerations for all lenders.
That’s why the first – and most crucial – step when remortgaging with poor credit is to always speak to an expert mortgage advisor, like UKMC.
By taking your credit history into account, we can tailor our approach and help you to search the whole market for the most suitable deal based on your specific financial circumstances.
Can I remortgage with bad credit?
First, let’s answer one of the most important questions; can you remortgage with bad credit? Yes, you generally can!
While processes vary between lenders depending on exactly how poor your credit score is, many will work with you to find a remortgage deal that works.
However, it’s important to note you may have fewer, less favourable options to explore if you have bad credit because lenders are more likely to classify you as a higher risk.
The answer to ‘can I remortgage with bad credit history?’ will also vary depending on which credit issues you’ve experienced.
More serious problems like bankruptcy, County Court Judgements (CCJs), and Individual Voluntary Arrangements (IVAs), can limit your ability to remortgage or get a remortgage deal.
In some cases, your remortgage application will be rejected if you have significant credit issues and don’t meet the lender’s criteria.
That’s where our team of experienced mortgage advisors can help, ensuring you have access to the most suitable remortgage deals.
Disclaimer
Please note, you may have to pay an early repayment charge (ERC) to your existing lender if you remortgage.
Your home may also be repossessed if you don’t keep up your mortgage repayments.
Why might you be refused a remortgage?
No single number constitutes a ‘bad’ credit score.
Instead, there are many factors that can affect your affordability and whether a lender might refuse your mortgage application, including:
- Poor credit history – if your credit history features recent missed payments or defaults
- Drop in income – a decrease in your salary may impact your ability to cover mortgage payments
- Changes in employment – changing jobs or moving from a full-time to part-time or temporary contract can make it harder to prove you have a stable income
- Excessive debt – high credit card balances, large personal loans, and persistent use of overdrafts can result in a high debt-to-income ratio
- Reduced property value – if your home is worth less than your mortgage balance, you will likely exceed lender’s maximum loan-to-value (LTV) limit allowed
How to remortgage with bad credit
Now we’ve covered whether you can remortgage with bad credit, let’s tackle the most common follow-up question our team is asked: ‘How do I remortgage with bad credit?’
Talk to an advisor
Remortgaging with bad credit can be a more complex process than a straightforward remortgage which is why it’s important to seek professional support.
As informed remortgage advisors, we can help by providing access to exclusive deals, and recommend lenders and arrangements that take into account your poor credit.
Our team can also explain complex terms, and help you to weigh up the pros and cons of each offer in relation to your financial situation.
Make an informed decision
Bearing in mind the interest rate, Early Repayment Charges (ERCs), exit fees, and valuation fees of various mortgage arrangements available to you, you can choose the most suitable remortgage deal for your specific circumstances.
Apply for an Agreement in Principle
Simply complete an Agreement in Principle (AIP) and then apply for the remortgage deal by providing all the necessary personal and financial information the lender requires.
This is usually everything you will have previously given to your original mortgage provider, such as your full name, date of birth, address history for the past 3 years, payslips, bank statements, proof of your deposit, and a valid photo ID.
Contact your solicitor
A solicitor will take over once a lender has approved your application and carried out their full credit and affordability checks to officially transfer your mortgage to the new deal.
Contact UKMC for expert remortgaging advice
Feeling frustrated with your poor credit score?
If you’re worried about how your bad credit might impact your remortgage application, get in touch with us today.
We know that bad credit can make your remortgage options feel daunting, but it doesn’t have to be that way.
Our mortgage advisors take the time to understand your financial circumstances and application, ensuring we present you with only the most suitable mortgage deals.
If you have a query related to ‘can I get a remortgage with bad credit?’ or need help understanding and accessing bad credit remortgage deals, why not arrange your free UKMC appointment today?
We’d love to hear from you! Simply call us on 09125 573328 to get the ball rolling or reach out by sending your enquiry to hello@ukmc.co.uk.
You can also contact our friendly team by filling out our convenient online form or even dropping by our Warrington office.
Disclaimer
UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited.
Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
You may be charged a fee for your advice. A typical fee is £495, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
Registered company number: 15825320
