Remortgage with bad credit

In short yes you can, remortgages with bad credit can be harder to place and typically the rates may be higher than some high street products but this will all depend on your credit history and the age of the debt. It’s advisable to speak to a mortgage broker if you have or had bad credit.

A bad credit history can be problematic when you’re looking to remortgage. If you’re eager to switch to a better deal and your credit rating is letting you down, we may be able to help.

The brokers at Clever Mortgages are experienced in helping people just like you remortgage with bad credit.

We try to answer all your questions about remortgages in this section. But if there is anything you don’t understand, or need more information, click live chat in the bottom corner or give us a call on 0330 232 0285 and we will be happy to discuss your remortgage queries.

Yes, when you remortgage you can borrow additional funds for things such as home improvements or to consolidate debts. The amount of additional borrowing will however be dependent on the equity within your property, your affordability and your credit score.

Some clients find it easier to stay with their existing lender to remortgage for various reasons, credit history, decreased income levels, even if the current lender does not offer the lowest rate.  A good broker will always compare a clients existing lender to any potential savings from remortgaging to a new lender, especially where additionally monies are not required.

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.

There are many reasons why you may want to consider a remortgage, even if you have bad credit. You may just need a better interest rate, which could save you money each month or give you security of payment. Perhaps you wish to raise additional funds to consolidate debts or make improvements to your home.

Whatever your need, we have access to a wide range of products and could help to secure you finance no matter what your circumstances.

This may depend on whether you have been late with just one payment or whether you have a history of making late payments. Being late is not the same as being in arrears – a late payment is deemed to be one that was made the same month you were due to pay it.

For example, let’s say your mortgage payment was due on 5th May and you paid it on the 23rd May. That would count as a late payment. If, however, you didn’t pay it until June, you’d be considered as being in arrears.

If you’re habitually late making payments, look at setting up direct debits or standing orders, as appropriate, to make sure you don’t fall foul of forgetfulness. It’s a much easier way to keep your credit record as clean as you can. Furthermore, one missed payment on an unsecured source of credit may not be viewed as seriously as one missed payment for a mortgage or other secured loan.

If you’ve already been declined for remortgaging owing to a late payment, we may be able to assist you in finding a specialist lender who is more lenient than regular lenders. Call today to find out more.

It’s best to start by looking at your current mortgage deal. Find out when it ends and whether there are any charges involved if you switch deals early. If you don’t do anything and let your existing deal finish, your lender will likely switch you over to their standard variable rate (SVR) – and that could be pricey.

You should begin looking for a new deal before your current one ends. By using experienced brokers at Clever Mortgages, you may find it easier to locate a better deal.

Yes, it’s possible to remortgage but you may need to look at a more specialist lender dependent on your partners credit history. Depending on whether you are looking to borrow additional funds a broker will look to see whether it would be better to seek a new rate with your existing lender.

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.

Yes, normally they look back over the last 6 years of your credit history, but they could go back further if you’ve ever been bankrupt for example.

Lenders could also take all your spending and repayment habits into account.  This includes loans you may have, utility payments and even mobile phone accounts.

How many missed mortgage payments and when you missed them could have a significant impact on your mortgage application.  Having just one missed payment several years ago is unlikely to affect your mortgage application drastically

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. However, this is all simple enough.

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.

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.

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.

If the value of your property has increased this should give you a lower Loan to Value (LTV), as you have more equity, which could give you more favourable rates if you move to a new lender.

This will vary from lender to lender, some lenders may offer some products with free legals and arrangement fees that can be added to the loan.  A mortgage broker will be able to run through all the costs with you including any potential broker fee.

Depending on the severity of the credit issue a specialist lender may be required, the rate with these lenders may be higher than what you would pay with a  high street lender.

This will be dependent on how long ago your IVA was registered and what LTV you are looking for.  A specialist lender will be required.

In short yes, again dependent on how long ago your IVA was registered and the equity within your property you can remortgage to settle the IVA.

Yes, you can remortgage whilst in a Debt Management Plan, the new lender, which is more likely to be a specialist lender would follow the same process as if you were applying for the first time.  You will still have to pass affordability checks and they may ask to see proof that you have satisfactorily maintained your plan for the last 12 months.  The level of borrowings and rate will be dependent on your LTV and affordability. 

It is possible to raise additional funds whilst remortgaging to consolidate or settle your DMP, this will dependent on the maximum borrowing based on your income and LTV plus the lenders normally checks.  The creditors within your DMP may accept a lower settlement figure to repay the balance in full.

If there has been some sizeable changes within your income since you initially took your Mortgage then if may be best to look at new products being offered by that lender.  Product Transfers do not normally have credit or affordability checks.

There are a lot of benefits for using a Mortgage Broker to look at your Remortgage options.  They know the market, each lenders criteria and will be able to advise on the best route, even if that route is to stay with your existing lender.  Clever Mortgages are able to fully assess your existing circumstances your future requirements and secure that best route for you.

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

Read more on what a mortgage broker does for you