We could help you remortgage with bad credit
You could get approved for a remortgage with bad credit, overcoming approval barriers. We are adverse mortgage broker of the year 2023.
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Remortgage with bad credit
If you have a poor credit history it can be a huge barrier to getting your mortgage application approved. Many of our customers come to us for a remortgage with bad credit as they have been unable to get approval elsewhere.
Although you might struggle to remortgage with bad credit, with the right lender it is possible to do. If you have previously taken out a mortgage with bad credit, but have since improved your credit score, then you might find that you can save money by switching to a different provider with a better interest rate.
Why a remortgage?
A remortgage is the process of taking out another mortgage on your home. This can be done for a number of reasons:
- To get a better deal. However, if your credit score has worsened then it’s unlikely that you will be able to find anything better than your current deal.
- To raise money. This is done by releasing equity tied up in your property by taking out a new mortgage which is larger than your existing one.
- Debt consolidation. Many people remortgage and use the money raised to restructure their existing debts.
Is it worth remortgaging if you have bad credit?
Unless you have improved your credit score, it may be worth staying with your current lender. If your credit score has got worse or stayed the same then it’s highly unlikely you will be able to get a better deal elsewhere.
If you’re not in an ideal situation to remortgage then you should look to improve your credit score. You can then look at remortgage options once your credit file reflects this improvement.
You should also take into consideration any penalties – Early Repayment Charges (ERC’s) – that you might incur. Before deciding to remortgage you should work out whether these charges will eat into any of the potential savings you could make through remortgaging.
How do I know if I have bad credit?
Your credit score is the most important piece of information about you when applying for any type of finance. If you’re not sure, you can check your credit score easily online through online credit providers including Experian and Equifax.
How can I improve my credit score?
There are a number of things you can do to help improve your credit score. This can increase your chances of being approved for a remortgage, giving you access to cheaper deals. One thing you can do right away to positively impact your credit score is ensuring you’re on the electoral register. Registering to vote allows lenders to easily verify your identity and address. The more security lenders have in terms of your information, the more confident they will feel about lending you money.
Mortgage application process
4 simple steps for applying for a mortgage. See more about the mortgage application process here
Complete our
pre-qualify form
Let us know a few details about the mortgage you require
A mortgage specialist will call
One of our brokers will call and get a few more details of your requirements
We search for your perfect mortgage
We will search the market for the best rates for your circumstances
A Decision in Principle is made
We will secure a DIP with a lender, if you approve we move forward with a full application.
Whatever your mortgage goal, there will be something for you
We're on a mission to save you money on your mortgage
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- We liaise with all parties on your behalf
- Helping you even where others have said no
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We specialise in helping people find a mortgage and remortgage.
We require your details only once and we’ll know the best lenders for your circumstance and give you the best rates.
What should I do next?
There are many ways to contact us
Enquire online – our simple online form takes just a few minutes.
Give us a Call – our qualified advisers will assess what you are looking and do all the hard work for you searching the market – 0800 197 0504.
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Remortgage with bad credit FAQ
We have answered all your questions hopefully, but if there is anything you still need to know, please call us on 0800 197 0504
About a remortgage
A remortgage is made up of two parts:
- Capital – the money you borrow
- Interest – the charge made by the lender on the money you owe
Repayment mortgage: you pay back the capital and the interest together in one monthly payment. Over the duration of the mortgage your balance will get smaller and your mortgage will be paid in full by the end of the term – usually 25 years. This is the most common type of mortgage.
Interest only: you start paying back the interest on your mortgage on a monthly basis. At the end of the mortgage term you need to repay the whole of the capital in one lump payment. If you choose this kind of mortgage the lender will need to know how you intend to pay off the capital at the end. It could be that you are paying in regularly to savings and investments or it could include a pension payout. These are not very common anymore but could help in certain circumstances.
Part repayment and part interest only – this option is a mix of both, so at the end of the term you’ll have paid off some, but not all of the capital and you’ll still need to find a way of repaying the remaining balance.
How does remortgaging work?
When you remortgage, you don’t need to move home. Instead, you switch from your existing mortgage to another one. This could be with the same lender or a different one. This typically happens when the existing mortgage ends or when a fixed rate ends, or when circumstances suggest that switching deals may be cheaper.
How to switch mortgage provider
If you cannot find a competitive remortgage deal with your current lender, it may be time to look elsewhere. The application process may be more involved than it would be if you stayed with your existing lender. They won’t know you, so you’ll need to complete more paperwork to supply all the information they need. However, this is all simple enough.
If you find a competitive deal with another mortgage provider, you’ll need to get an Agreement in Principle (AiP) first. When you’re ready to switch, you’ll need to make a formal application for that mortgage deal.
Switching may be harder if you have bad credit. However, it’s not impossible. We regularly help people find better remortgage deals. There could be extra costs involved when switching to a new lender, but our expert brokers can guide you through the options to find a competitive offer.
When should I remortgage?
Remortgaging is when you change your mortgage on your existing property, from the same lender to a better rate, or from one lender to another. Your new mortgage will then replace your old one.
You may want to remortgage if you’re:
coming to the end of your existing mortgage rate or fixed term
looking for a better deal than your current lender can offer
planning to borrow more money against your property to free up extra cash
- Look to reduce your monthly payments on your mortgage
Best remortgage rates
Finding the best remortgage rates is even more important when you have bad credit. You’re likely to pay higher interest rates if you have a bad credit history. However, as with all mortgages, you need to shop around to compare deals and see which lender may have the best option.
You may find it simpler to use a broker in this situation. Our brokers have extensive knowledge of the marketplace when it comes to finding bad credit remortgage deals. Contact us today to see how we may be able to help.
How long does a remortgage take?
It depends on the individual circumstances. However, it usually takes at least four weeks and anything up to eight weeks. It may be easier if you end up switching deals with the same lender rather than swapping to another one. However, finding the most competitive and relevant remortgage offer for you is most important.
Why use a broker?
Finding any mortgage can feel challenging. While you don’t need to use a broker, if you do, it means you should benefit from a wealth of experience you won’t have. Clever Mortgages can guide you through the possibilities and see if it is possible to find a cheaper and more competitive remortgage offer today.
Can I save money if I remortgage with Bad Credit?
There are many reasons why you may want to consider a remortgage, even if you have bad credit. You may just need a better interest rate, which could save you money each month or give you security of payment. Perhaps you wish to raise additional funds to consolidate debts or make improvements to your home.
Whatever your need, we have access to a wide range of products and could help to secure you finance no matter what your circumstances.
Can I get remortgage with bad credit or poor credit?
A bad credit history can be problematic when you’re looking to remortgage. If you’re eager to switch to a better deal and your credit rating is letting you down, we may be able to help.
The brokers at Clever Mortgages are experienced in helping people just like you remortgage with bad credit.
We try to answer all your questions about remortgages in this section. But if there is anything you don’t understand, or need more information, click live chat in the bottom corner or give us a call on 0800 197 0504 and we will be happy to discuss your remortgage queries.
Can you pay off lump sum when remortgaging
When remortgaging, you have the option to pay off a lump sum to reduce the outstanding balance of your mortgage. This can reduce the total interest you pay over the life of the loan and shorten the loan term. However, it is important to consider any early repayment fees that may apply and to compare the cost of the lump sum payment with the potential savings to ensure it makes financial sense for your situation.
Who can apply for a remortgage?
You can apply for a residential mortgage if you are:
- aged 18 or over
- receiving a regular income
- already have a mortgage and are within 6 months of the end of your fixed term
- if you have a mortgage and are not in a fixed term
Why use a mortgage broker?
Most of our customers have had some form of credit difficulties, from low credit score, missed payments or declined a mortgage elsewhere.
- Valuable knowledge, through years of experience helping customers
- Bad credit / poor credit experts
- Find the right mortgage first time
- Some mortgages are only available through a broker
- Help with the application process
- Advice on all options available, such as help to buy, guarantor or shared ownership
Below are some of the lenders we work with
