Remortgage Options for People with Bad Credit

Getting a remortgage with a bad credit history can be a bit trickier, especially since remortgages are a little stricter than a regular mortgage. However, at Just Remortgages we work with over 100 mortgage providers in the UK, and many are willing to take a view on bad credit histories even if you have poor credit, defaults or CCJs.

Use our remortgages for bad credit calculator to see how much you can borrow and get an indicative quote. We will present you with a list of options or one of our mortgage partners will contact you with more information. Applying with Just Remortgages will not affect your credit rating and there are no fees for applying.

How To Get A Remortgage With Bad Credit

It is very possible to get a remortgage with poor credit and you can use the following options:

Apply with your existing lender

Provided that you have made all other mortgage payments on time, your lender will see that you are indeed a good customer. The terms may be slightly different though and you may be subject to higher rates.

You could pay higher rates

Like most bad credit loans, the interest rates charged are higher to reflect the potential risk of default. You will have to weigh this up over staying on the standard variable rate (SVR) since the rates could be quite similar.

Apply with a new lender

You can compare remortgage deals available and apply specifically for remortgages for bad credit. With so many different lenders available, each with a different eligibility, you may find that there are introductory offers available for the first 1 or 3 years which make it more affordable.

Pay off more of your existing mortgage

If you have more equity in your home, perhaps due to paying off your mortgage for several years, you will be able to request a lower loan-to-value (LTV). This means that you are essentially borrowing less money than your previous mortgage and mortgage lenders may be more flexible with their eligibility criteria. Improve your credit score

The stronger your credit score, the more likely that you will be accepted. There are some quick things you can do to better your score including confirming your address via the electoral roll, staying within your credit limit for loans and credit cards and using credit builder cards.

What Can I Do To Improve My Credit Score?

If you think that you may have bad credit due to some missed repayments and defaults, you can start by seeing what your actual score is. You can request a statutory credit report for just £2 through the government or use tools such as Noddle, Experian or Equifax to monitor your credit rating on a daily basis as it goes up or down based on your credit performance.

Ideally, paying off any outstanding debts including loans and credit cards is the best way to boost your credit score. If you have credit card debts, consider using a 0% balance transfer to move the debt onto another card and at 0%, it should be cheaper and more manageable to pay off.

If you are cash positive, you can use a credit builder card to make regular payments on time, because this information will be reported back to credit reference agencies and your score will improve. Otherwise, you can do some other basics such as closing any credit cards or store cards that you do not use and stop sharing any joint accounts with other people with bad credit because this can affect you through association.

If you have a lot of outstanding debts, consider using a debt consolidation loan and tying this up with your remortgage to have combine all your liabilities and pay them off through one source.

What Is The Eligibility For A Remortgage With Bad Credit?

Your debt-to-loan ratio is not too high (you do not have lots of other credit cards or loans open)

  • Your defaults have since been cleared or satisfied
  • You are employed with a stable and regular income
  • You have made all other mortgage payments on time
  • Your credit score is getting better, not worse

At Just Remortgages, we work with the whole of market and can help find the best remortgage for bad credit for you. We accept over 2,000 applications every day and you can receive an indicative quote in minutes by using our calculator and applying online. You can have peace of mind that applying will not harm your credit rating or charge you any fees.

You may be contacted by one of our trusted mortgage partners to help you find the remortgage product for you. To get started with an initial quote, simply click on the apply now button below.