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Bad / Low Credit Remortgaging

Got a low credit score and wanting to remortgage? Don’t stress. Read on and find out how you can do just that.

Getting a mortgage if you have poor credit isn’t always the simplest of tasks. As you probably remember from when you were filling out the application for your first mortgage deal, you will have been subject to an affordability assessment. This is the same for when you’re remortgaging.

This will have involved things like checking your credit score, whether your income would allow for the amount that you wanted to borrow and whether your outgoings were within your means according to the lenders affordability calculations. We’re going to show you how these factors can have a bearing on your ability to get a mortgage that allows for bad credit and whether they can be an option for you moving forward!

How does remortgaging to a bad credit mortgage differ to your initial mortgage?

Unfortunately, mortgages that allow for bad credit can be more difficult to arrange due to the complexity of the borrower’s financial circumstances and how many brokers & lenders are often unwilling to understand this. Fortunately for you, at Mortgages Online we can offer you expert advice on a tonne of different mortgage lenders that would be willing to take your situation into account. This can then help you get an affordable mortgage that ultimately works for you.

We understand that bad credit can prove to be a real thorn in your side while you’re trying to remortgage. We also know it may even leave you asking yourself whether it’s possible for you to even get a mortgage at all. But fear not, we can help you. If you don’t feel this piece answers all of your questions don’t be afraid to contact us or check out some of the other articles on our site.

Why might someone want to refinance to a bad credit mortgage?

So first of all, you might be wondering how you’ve got a bad credit score in the first place. What went wrong? This can be for a number of reasons. The main factors that lead to a poor credit score can be late mortgage repayments, failing to pay bills on time, bankruptcy or having defaults recorded on a credit file. This can leave you wanting to remortgage but needing a deal which will help you get back on your feet and give you an opportunity to tidy up your credit score.

But don’t be disheartened. While having a poor credit score isn’t the best position to be in, you still absolutely have options to work with. This is going to largely depend on a number of factors. For example, how serious your situation is, how you convey this to your lender and how severe your actions were that led to your poor credit rating. It’ll also be important to note when the events that influenced your poor credit score occurred and the amount of home equity that you hold in your property.

Is remortgaging to a bad credit mortgage a viable option?

As we’ve already said, not every lender in the world is going to give applicants an opportunity to remortgage with them. We recommend that if you’re concerned about your ability to remortgage with a poor credit score or have a credit history which is more or less non-existent you can look for mortgage lenders that don’t look too much into credit score. Though this might seem strange, a lot of these types of mortgage lenders exist in 2018 and can offer a much more flexible option for those that have a poor credit score.

If you’re worried about your credit rate worsening, having the services of a mortgage broker can also be a great option. We recommend that you go for one that works independently as opposed to having an affiliation with a specific bank or lender. After all, no one would want advice that could be biased or not completely impartial. Overall, we recommend that you definitely give an independent broker some serious thought as their ability to assess your situation and find an appropriate lender could go a long way!

What types of bad credit mortgages could be suitable for me?

Remortgaging to a mortgage that allows for bad credit can be a great way to get your life back on track following any financial hardship. For example, you may want to remortgage to a fixed-rate mortgage. This will mean that your mortgage payments will remain stable for a set period, which would allow you to budget. You may be in a position where you can remortgage & release equity, allowing you to clear those missed payments, loans or credit cards that are in default or outstanding CCJ's. By clearing the issues that are causing you to have bad credit then keeping your nose clean for a couple of years could see you returning to a high street lender next time you remortgage.

So, if you have bad credit and you’re looking to remortgage, look no further! At Mortgages Online we compare thousands of mortgages from hundreds of different lenders. Which means, we can find the mortgage that’s right for you.


Laura Waller

Laura Waller has been working in the mortgages industry since 2013, joining an independent brokerage in Essex. Laura has CeMAP 2 & 3 – Certificates in Mortgages Advice and Practice. Since then Laura oversees marketing for Mortgages Online, using her experience and expertise to write articles and blogs about mortgages and related topics.

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