If you’ve got a mortgage you might be able to make huge savings each month by remortgaging, even if you’ve got bad credit
We’ve helped hundreds of customers like you find a bad credit remortgage product that makes a real difference to their monthly outgoings. Here we’ll cover:
What a remortgage is, and reasons to consider remortgaging
How we helped our customer get a remortgage deal, even with bad credit
Why it’s best to go through a mortgage broker when you’ve got bad credit
Remortgaging could be easier than you might think – what your next steps are
What is a remortgage?
A remortgage is when you take out another mortgage on your home to replace your current mortgage, or to borrow extra money against your property.
Why would I remortgage a property?
Raise money
You can raise money by releasing equity in your home and taking out a new mortgage that is larger than your existing one. You could do this to consolidate debts, make home improvements, or fund something else in your life.
Save money
You could save money by remortgaging and switching to a cheaper mortgage provider – making your monthly payments smaller each month. You will need to check the terms of your contract though to make sure you aren’t charged any early exit fees.
As your mortgage is likely to be your largest debt, it makes sense that improving on it can also give you the largest saving – a saving that can add up to thousands of pounds each year.
Exactly how much you could save will depend on several factors, including:
- How much equity you have in your property
- What your current deal is like
- Whether there is a fee for ending your current mortgage deal
- Whether your home’s value has increased
- How much your remortgage costs
How we helped one customer by finding a bad credit remortgage:
With Clever Mortgages, Mr and Mrs C were able to:
Get a debt consolidation remortgage, even with a poor credit history Secure a fixed rate of 2.10% Save almost £500 each month on mortgage and debt repayments
| Balance | Payment | Rate | Product | Term | |
|---|---|---|---|---|---|
| Current Mortgage | £61,000 | £490 | 1.25% | Lifetime tracker | 12 Years |
| Current Secured Loan | £43,000 | £436 | 10% | Standard Variable Rate | 12 Years |
| Unsecured debts | £44,320 | £657 | Various | Various | Various |
| New Mortgage | £150,000 | £1097.67 | 2.10% | 5 Year Fixed | 13 Years |
Mr C had been in an IVA, which he’d now completed, and Mrs C was currently in a Debt Management Plan. They wanted to consolidate their secured loan, plus three other debts, into a new mortgage product – hoping that this would bring down their monthly repayments.
At Clever Mortgages we were pleased to be able to help them, and we secured them a new mortgage which is now saving them a significant £485 every month! This is making a real difference to their lives, and helping them get back on track, improving their credit score.
Watch our video on the remortgage application process
What do I need to know about getting a bad credit remortgage?
Remortgaging can help you to save money every month, and can also be a good way to get a lump sum of money, instead of taking out a personal loan.
As a mortgage is such a large financial commitment, it’s important to give it plenty of consideration – but don’t panic either, our team help customers every day to decide what to do next when it comes to mortgages and their situations. We can help you:
- Understand different mortgage options, including fixed and variable mortgages
- Understand also how equity releasing from your property can work
- Consider any risks, such as whether you can manage the monthly repayments
- Find out your potential best options for if you did go ahead and remortgage
Next steps for a bad credit remortgage
If you want some expert advice on remortgaging, and what it could mean for you – get in touch with our team today. You can call us on 0330 232 0285, or enquire online.
You can also find lots of advice on all things mortgages, in our Guides and Advice section.
What are the benefits of remortgaging?
A remortgage is when you take out another mortgage on your home to replace your current mortgage– and we can help you with this, taking all the hassle away from the remortgaging process.
It’s sometimes possible to secure a lower rate, giving you the opportunity to consolidate your debts, whilst saving yourself money every month. Debt consolidation can be a good solution for some mortgage customers – however, it’s not suitable for everyone.
You should always review the total amount payable through consolidation, not just the immediate savings in terms of a reduced monthly payment. Please be aware that any unsecured debts consolidated within the mortgage, would then be secured against your property.
We’ve helped 1000s of customers to remortgage – and bring their monthly payments down.
I want to remortgage but have bad credit?
Worried about bad credit? We work with customers every day who have bad credit but want to remortgage – and we always do what we can to help.
Remortgaging could be easier than you might think – especially when you choose a broker who knows how to get you with the right lender to save you money.
Enquire with us about a remortgage with us, and we could:
A debt consolidation mortgage can help you save money every month – we recently helped Mr C who was nearing the end of his fixed rate deal, to consolidate his secured loan and mortgage into one monthly repayment reduce the mortgage term and save money.
Help get you back on track – being able to consolidate Mr C’s secured loan with a mortgage product meant only having to plan for one monthly payment instead of two, making the overall debt much easier to stay on top of.
Reduce the term of your mortgage – we can often help customers cut years off their mortgage – helping them to become mortgage free far sooner than they thought.
Why should I use a mortgage broker?
You’re likely to only have to do one application – this will save you time, and more applications from being recorded on your credit file
Some mortgages especially for people with bad credit are only available if you go through a mortgage broker
Brokers can advise on what would improve your chances – e.g. finding a guarantor or opting for a joint mortgage
They can take the hassle of application forms away – talking you through every step, and asking all the right questions
What next?
If you are looking for expert advice on remortgaging your property, contact our team today. We will be happy to help advise you on what you on your options.
We are experts in offering solutions to people with bad credit and can help you if you need a helping hand with your next move.
Get a call from a mortgage advisor at a time to suit you
