Getting a remortgage with bad credit

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.

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.

A missed payment isn’t the same as a late payment. Most people forget to pay a bill occasionally, but in most cases, they’ll rectify the error and pay it as soon as they realise. A missed payment occurs when you don’t pay the bill at all – late or otherwise. As such, it has a greater effect on your credit record than a late payment.

If you have missed one or more payments, they will remain on your credit file for six years. When a lender considers you for a remortgage deal, they’ll look for missed payments. If they find one or more, they’re likely to see how recent they were. If you missed one five years ago but have paid on time ever since, this is far less likely to affect your application than if you missed a payment a few months ago.

In every case, though, you may stand more chance of remortgaging with missed payments on your credit record if you speak to a broker with experience in this sector of the mortgage market.

A missed payment isn’t the same as a late payment. Most people forget to pay a bill occasionally, but in most cases, they’ll rectify the error and pay it as soon as they realise. A missed payment occurs when you don’t pay the bill at all – late or otherwise. As such, it has a greater effect on your credit record than a late payment.

If you have missed one or more payments, they will remain on your credit file for six years. When a lender considers you for a remortgage deal, they’ll look for missed payments. If they find one or more, they’re likely to see how recent they were. If you missed one five years ago but have paid on time ever since, this is far less likely to affect your application than if you missed a payment a few months ago.

In every case, though, you may stand more chance of remortgaging with missed payments on your credit record if you speak to a broker with experience in this sector of the mortgage market.

A missed payment isn’t the same as a late payment. Most people forget to pay a bill occasionally, but in most cases, they’ll rectify the error and pay it as soon as they realise. A missed payment occurs when you don’t pay the bill at all – late or otherwise. As such, it has a greater effect on your credit record than a late payment.

If you have missed one or more payments, they will remain on your credit file for six years. When a lender considers you for a remortgage deal, they’ll look for missed payments. If they find one or more, they’re likely to see how recent they were. If you missed one five years ago but have paid on time ever since, this is far less likely to affect your application than if you missed a payment a few months ago.

In every case, though, you may stand more chance of remortgaging with missed payments on your credit record if you speak to a broker with experience in this sector of the mortgage market.

County court judgements can make it difficult to find another mortgage deal. That said, if you cleared the debt within 30 days of receiving the CCJ, it may not cause any problems. It may also depend on when you received the CCJ. The longer ago it was, the more likely it is that lenders may consider you for remortgaging today. For example, there’s a clear difference between having a CCJ seven years ago and one that occurred three months ago. Lenders are going to look at your credit history to see whether you’ve been more reliable with repayments since then.

However, you may still be able to remortgage even with one or more CCJs against you. It’s unlikely you’ll be able to get a standard deal from a lender though, which can make it more difficult to find something suitable.

County court judgements can make it difficult to find another mortgage deal. That said, if you cleared the debt within 30 days of receiving the CCJ, it may not cause any problems. It may also depend on when you received the CCJ. The longer ago it was, the more likely it is that lenders may consider you for remortgaging today. For example, there’s a clear difference between having a CCJ seven years ago and one that occurred three months ago. Lenders are going to look at your credit history to see whether you’ve been more reliable with repayments since then.

However, you may still be able to remortgage even with one or more CCJs against you. It’s unlikely you’ll be able to get a standard deal from a lender though, which can make it more difficult to find something suitable.

County court judgements can make it difficult to find another mortgage deal. That said, if you cleared the debt within 30 days of receiving the CCJ, it may not cause any problems. It may also depend on when you received the CCJ. The longer ago it was, the more likely it is that lenders may consider you for remortgaging today. For example, there’s a clear difference between having a CCJ seven years ago and one that occurred three months ago. Lenders are going to look at your credit history to see whether you’ve been more reliable with repayments since then.

However, you may still be able to remortgage even with one or more CCJs against you. It’s unlikely you’ll be able to get a standard deal from a lender though, which can make it more difficult to find something suitable.

It means to swap your current mortgage for a different one. The usual reasons for doing this are:

• Your existing deal is ending, and you want to find a cheaper rate than the standard variable your lender wants to move you to
• You want to find a better interest rate (more likely if the interest rates have dropped since you took out your current deal)
• You want to increase your mortgage for say debt consolidation or home improvements (quotes are usually required)

In all cases, you’re not moving home, simply switching from one mortgage to another.

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.

When you are ready to switch, you should search for a lender who can offer a decent deal. A broker can help you search a wider portion of the market, which is especially important if you’re looking to remortgage with bad credit. Clever Mortgages specialises in helping customers with bad credit, so you’re in a good place.

The first step is to get an Agreement in Principle, otherwise known as an AiP. This doesn’t need a full credit check – it merely gives you an idea of what you may be able to borrow if you’re accepted. If you go on to make a formal application, the lender will review your credit history, income, affordability and let you know whether you’re approved. They’ll also arrange for a property valuation to take place.

If you switch to another lender, you’ll need to hire a solicitor to do this for you. A conveyancer also offers this service. However, some lenders will handle this part for you as part of the deal. Check the details to find out more.

Once legal completion has taken place, your new mortgage will repay your current mortgage and an additional funds raised will be used for the required purpose.  If this is debt consolidation funds may be sent direct to the provider. If it’s for home improvements, it will go to you.

Your new lender will let you know the new payments to make and when, the first one might be higher as it could cover more than one month.

There are various costs involved in remortgaging. One of the key ones to be alert for is an early repayment charge. For example, if you have a five-year fixed-rate deal, you may be charged if you try to exit that deal before the five years are up.

This fee could mean it is cheaper to stay on your current deal until it ends, rather than remortgaging early. If you think about switching, you must be sure the savings you’d make in doing so will outweigh the cost of remortgaging.

If you don’t have an early repayment fee to worry about, there are still likely to be other costs to think about. These may include:

• Arrangement fees
• Valuation fees
• Conveyancing fees
• Broker fees

If you source a remortgage deal for bad credit via one of our brokers, we can clarify the various fees that might be involved. There can be a lot of number crunching happening when you source a new deal.

It’s important to know which fees apply to which remortgage deal. It’s common for a low interest rate to have a high arrangement fee. You’re unlikely to get the best of both worlds in this case. Finding the right balance to give you the best remortgaging deal even with a bad credit history is vital, and we could help you do that.

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.

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.

Remortgaging should always be done with care. In some scenarios, the cost of remortgaging may mean it is cheaper to stay with the deal you’re on. For example, you may be subject to early repayment charges if you exit a deal within a certain period.

However, if you can get a cheaper deal elsewhere that would work out better over the time you hold it for, it may still be better to switch. A good example would be if you’re currently on a higher interest rate and you could get a far cheaper one with another lender. Even though you’ll see higher rates with lenders specialising in bad credit remortgaging, there’s still plenty of variety in that market. Speaking to a broker could make it easier to find a competitive deal.

Remortgaging means changing from one mortgage to another one without moving home. You can do this with the same lender if they have another better deal available. Conversely, you can switch to another lender.

Remortgage calculators are invaluable when you’re looking for a new deal. You can enter a few pieces of information to see your options. Your property price, the mortgage amount you need, and the term you’re looking to borrow over are all vital.

You can use our free remortgage calculator today to get an idea of the possibilities. We also include advanced features to help you search for fixed or variable rate deals over different product periods. And of course, we’re here to help when you need further information.

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.

The remortgaging market can feel overwhelming if you’re not familiar with it. Seeking advice from an expert could help you understand how to remortgage and why it might be a good idea for you.

Our brokers specialise in sourcing mortgages for people with bad credit. Few mainstream lenders focus on people in this situation. That means it is even more important to take advice on how to find an affordable deal that’s better than the one you’ve got now.

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.

• 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