Can I remortgage with bad credit?

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.

Otherwise, you might be looking to remortgage in order to release equity tied up in your property. This is the process of taking out a new mortgage which is larger than your existing mortgage. This type of remortgage is often for the purpose of consolidating debt.

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 when until 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 don’t know what your credit score is then you can check this easily through online credit providers including Experian and Equifax.