Remortgage with Bad Credit
Having bad credit, or a poor credit score, doesn’t mean the end of the road for your mortgage options. It may feel daunting, but lenders don’t all treat credit history in the same way. With the right preparation and advice, remortgaging can still be possible, sometimes even at competitive rates.
We’ll walk through what counts as bad credit, how lenders assess applications, and what steps you can take to improve your chances.
Quick Takeaways:
Yes, you can sometimes remortgage with bad credit
Lenders will want details about the type and age of your credit issues
Specialist lenders are available where high street banks say no
Bigger deposits or lower loan-to-value ratios improve your chances
Friendly, expert mortgage advice backed by our happy clients.
What Counts as 'Bad Credit'?
Bad credit covers a wide range of situations, some minor, some more serious. Lenders look at both the type of issue and how long ago it happened.
Examples include:
Late or missed payments
Defaults on loans or credit cards
Mortgage arrears
County Court Judgements (CCJs)
Debt Management Plans (DMPs)
Individual Voluntary Arrangements (IVAs)
Bankruptcy
Many lenders consider issues older than 6 years as “spent”, meaning they no longer impact your credit file.
How Do Lenders Assess Applications with Bad Credit?
When reviewing your case, lenders balance several factors:
Type of credit issue
A single missed mobile phone payment is treated very differently to a recent bankruptcy.
How long ago it occurred
More recent issues (last 12–24 months) have the biggest impact.
Loan-to-Value (LTV)
The lower your borrowing compared to property value, the more flexible lenders can be.
Income and affordability
Stable income and manageable outgoings can offset some credit concerns.
Overall credit profile
Even with a CCJ or recent defaults, other positive behaviour (like consistent mortgage payments) helps.
What Are My Remortgage Options?
High street lenders: Unlikely to accept serious recent issues, but may consider minor, older blips.
Specialist lenders: Designed for clients with poor credit histories. Interest rates may be higher, but they provide a path forward.
Adverse credit mortgages: These products are specifically tailored for people with significant credit issues.
Rebuild Credit: Sometimes the best option is to pause, clear existing debts, and apply once your record looks stronger.
Could a Product Transfer Be a Better Option?
If your credit history has taken a hit since you took out your current mortgage, a product transfer might be your best option.
A product transfer is when you stay with your existing lender but switch to a new deal.
Why this could be a good option if you have bad credit:
Your current lender already knows you and your payment history
In most cases, no fresh credit check is required
You can often secure a new deal much quicker than remortgaging elsewhere
It can protect you from falling onto a higher standard variable rate without having to prove affordability all over again.
Even if you plan to switch lender in the future, using a product transfer now can give you breathing space to rebuild your credit before applying elsewhere.
Even if you plan to switch lender in the future, using a product transfer now can give you breathing space to rebuild your credit before applying elsewhere.
How to Improve Your Chances of Remortgaging with Bad Credit
Check your credit report – Use Experian, Equifax, or TransUnion to understand exactly what lenders see.
Correct any errors – Small mistakes can have big consequences. Challenge inaccuracies immediately.
Keep up with current payments – Even one late payment now can derail an application.
Reduce unsecured debt – Credit cards, loans, and overdrafts should be as low as possible.
Save for a larger deposit – The more equity you can offer, the less risky you look to lenders.
Get advice early – A whole-of-market adviser can pinpoint which lenders will actually consider your situation, saving time and stress.
FAQs
Can I remortgage if I have a CCJ?
Yes, some lenders will consider you, especially if the CCJ is over 2–3 years old or has been satisfied.
Can I remortgage if I'm currently in a Debt Management Plan?
It’s trickier, but specialist lenders may still offer options depending on how long the plan has been in place and your recent payment history.
Will I pay a higher interest rate with bad credit?
Usually yes, at least initially. However, many clients remortgage again to a mainstream lender after rebuilding their credit over time.
Can remortgaging help consolidate my debts?
Potentially, yes. Rolling debts into your mortgage can reduce monthly outgoings, but you must get advice as it could increase the total cost of your borrowing long term.
Need a Hand?
Remortgaging with bad credit can feel like a closed door, but often it’s just about finding the right lender. We’re based in Broadstairs and help local families and homeowners find practical, achievable solutions.
Ready to explore your options?
Prefer to email first? No problem!
Submit your enquiry here →
Need a Hand?
Remortgaging with bad credit can feel like a closed door, but often it’s just about finding the right lender. We’re based in Broadstairs and help local families and homeowners find practical, achievable solutions.
Ready to get started?
Prefer to email first? No problem!
Submit your enquiry here →
What our clients say about us ✪✪✪✪✪
We’re proud to help homeowners, buyers, and investors across Broadstairs, Kent and beyond with expert mortgage and financial advice. See what our happy clients have to say!
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
IMPORTANT: With investments, your capital is at risk. Pensions and investments can go down in value as well as up, so you could get back less than you invest.
Need Financial Planning Ltd is registered in England and Wales no. 10901658. Registered office, 123 High Street, Broadstairs, Kent, CT10 1NQ. Authorised and regulated by the Financial Conduct Authority. Need Financial Planning Ltd is entered on the Financial Services Register https://register.fca.org.uk/ under reference 977136. If you wish to register a complaint, please write to [email protected] or telephone 01843 228800. A summary of our internal complaints handling procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 0234 567.
© Copyright 2022 Need Financial Planning Ltd. All rights reserved. Privacy Policy | Disclaimer | Cookie Policy