Jason Bailey

Expertly compared by Jason Bailey

Products Updated October 19, 2021

 

Remortaging With Bad Credit

If you need to remortgage your home and have a bad or adverse credit then we may be able to help. We have access to all the lenders and mortgage deals available including lenders that provide mortgages to applicants with an adverse credit history and a low credit score. Use the comparison tools here or speak with a mortgage expert today.

 

Free mortgage advice and brokerage service. Our experts can find you the perfect deal from thousands of products & exclusive deals:

Your home may be repossessed if you do not keep up repayments on your mortgage.

Results:1 providers expertly compared:

Lending Expert

Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

LTV
60% - 100%

Initial Rate
1.19% - 4.32%

Standard Rate (SVR)
3.94% - 4.79%

APRC
3.6%

Type
Variable & 3 ,5 & 10 Fixed Rate

Rated 4.9/ 5

All credit types

The mortgage experts at First Choice Finance can quickly assess your requirements and search the market place to find you the perfect mortgage deal. Click get a quote to make an enquiry today.

Read our customer and visitor reviews for this product:

Rating: 4 / 5 with 2 votes

Simple application process

by K Wheeler

Simple application process - broker was kind and offered advice.

Quick search

by James Hilton

This is a quick mortgage search facility and shows many lenders across the market. Impressed with the level of detail on each product.

Remortgaging With Bad Credit at Lending Expert

If you’re looking at remortgaging but have a poor credit score, Lending Expert can help! We have access to all the lenders and mortgage deals available – including lenders that provide mortgages to applicants with an adverse credit history and a low credit score. 

Use the comparison tools here or speak with one of our mortgage experts today.

 

Key Points

  • Remortgaging is where you move the mortgage on your property from one lender to another. 
  • It is possible to remortgage with bad credit – you’ll just have to pay a larger deposit and have higher interest rates.
  • The maximum amount of money you can get for a mortgage is 80% of the property value. However, some lenders will cap this at 60% for applicants with poor credit.

 

How Does Remortgaging Work?

Remortgaging is the process of moving your mortgage on your current property from one lender to another. Once you have remortgaged, your new mortgage will replace your old one. 

 

Can I Remortgage With Bad Credit?

Yes, you can remortgage with bad credit, your options will just be more limited. It’s also likely that you’ll have to pay a larger deposit, and you’ll have higher interest rates to compensate for the risk the lenders are taking on with you.

 

Which Areas in the UK Can I Remortgage With Lending Expert?

We proudly offer remortgages across the entire UK, including: 

  • Birmingham
  • Cardiff
  • Edinburgh
  • Glasgow
  • Leeds
  • Liverpool 
  • London
  • Manchester 
  • Nottingham
  • Newcastle

 

What Can I Expect From a Bad Credit Remortgage?

If you have a bad credit rating, your lender will view you as a higher risk than someone with a good credit rating. This is because lenders typically view someone with a poor credit history as being more likely to default on payments, thus putting the lender’s money at risk.

Because of this, if you’re looking to remortgage, you’ll likely have to pay a larger deposit, and lenders may restrict the amount they are willing to lend to you. On top of this, mortgages available to people with poor credit usually have higher interest rates than those only available to people with a good credit score. 

There’ll be fewer options to remortgage with bad credit, but here at Lending Expert we can match you with the lender most likely to accept your application. We do all the hard work for you, and find the best interest rates available to you. Start your application today!

 

 

How Much Can I Get for a Remortgage With Bad Credit?

The maximum amount of money you can get with a mortgage is 80% of the value of the property you will be securing your loan against. However, if you’ve got a poor credit history, some lenders will only let you borrow up to 60% of the value of the property.

 

What Happens if I Fail To Keep Up With Repayments?

Your bad credit remortgage is secured against your property. This means that any late repayments will lead to a damaged credit score, late penalties, and maybe even risk of property repossession from your bank or lender. 

As such, it’s incredibly important to only borrow what you know you can afford to repay. You should always check through the repayment terms before remortgaging. Talk to our team of professionals at Lending Expert for unbiased advice.

 

How Do I Know if I Have Bad Credit?

The quickest and easiest way to find out if you have bad credit is to check your credit report. Once you know what your credit history looks like, you can try to improve it if necessary. 

 

How Can I Improve My Credit Rating?

To improve your credit rating, you need to prove that you can make payments in full and on time. It can be a lengthy process, as your credit rating automatically starts at zero when you turn 18, and gets better or worse depending on your spending habits. 

However, there are some things that you can easily do to boost your credit score:

 

Join the Electoral Register

By joining the electoral register, you are recording your full name, address, date of birth, and other personal information. This can then be used by lenders to verify your identity easily, making the process much smoother. Joining the electoral register also instantly increases your credit score because it confirms these details. 

It’s free to do and doesn’t take long. You can register to vote in the UK here.

 

Pay Off Your Existing Debts

A simple way to boost your credit score is to pay off your existing debts. 

If you have lots of outstanding debts, your credit score will be negatively impacted. Many outstanding debts show lenders that in the past, you have been unable to make repayments. You could consider taking out a larger debt consolidation loan, work out a manageable repayment plan, or ask your existing lenders for a payment holiday.

 

Don’t Apply for Too Many Credit Loans at Once

Applying for lots of credit cards or loans in a short space of time will negatively impact your credit rating. Every time you apply is recorded and your credit score is adjusted to reflect these multiple applications.

If someone makes several applications each day, they seem to be in desperate need of quick money. A lender would not look well on this, as you would be deemed more of a liability than someone with only one application on file.

Here at Lending Expert, we match your application with the lender who is most likely to approve you and give you the best rates. This means that you won’t have to fill out multiple applications and risk negatively impacting your credit rating.

 

Keep Your Utilisation Rate at Around 30%

Your utilisation rate, sometimes known as your debt-to-loan ratio, plays a big role in your credit rating. The utilisation rate shows how much of the available credit you actually use. This percentage shows lenders how responsible you are using the credit you have available.

As an easy example, if your credit card allows you to borrow $1,000 per month, and you only borrow $150 per month, your utilisation rate would be at 15%. Lots of credit rating agencies agree that you should try to keep your utilisation rate at around 30% – $300 per month in this example. This shows the lender that you are a responsible borrower who keeps up with their repayments and only borrows what they can afford to pay back.

 

FAQ

If you went back to 2007 you would find that lending to people with bad credit was seen as a lucrative area of the lending market and that loans were very widely available. As the credit crunch hit, these loans have gradually grown far fewer in number as lenders have become a lot more risk averse. Therefore you will find that mortgages available to people with poor credit histories are now limited in number.

Although it is possible to find a mortgage if you have a poor credit rating, it is a lot more difficult than for someone with a good credit rating. Even then, it will depend on the exact reasons for your poor credit rating as some types of debt are viewed as carrying a higher risk than others.

Even if you only think you have a poor credit rating it is worth getting a copy of your credit report so that you can see exactly what is bringing your score down. The very first thing you will need to do is to make sure that everything on there is actually correct. Something that will not work in your favour is making multiple applications for mortgages with a range of lenders. Therefore it is worth getting independent financial advice about how to best proceed with a mortgage application as they will already have a good idea of whether you will be accepted or not. If you need to get a potential lender to do a credit check you can ask them if they are willing to carry out a quotation search rather than a credit check as this will not leave a footprint and will give you a good idea whether your application will be accepted.

If you have a bad credit rating you will be viewed by mortgage lenders as presenting a larger lending risk to them than someone with a better credit rating. Therefore if you are going to find a mortgage with a bad credit rating you will generally be expected to have a larger deposit. You will find that lenders will restrict the amount that they may be willing to lend you. The maximum that you will be allowed to borrow will be 80% of the value of the property, however you should be aware that some lenders will only allow you to borrow up to 60% of the value of a property.

You will also find that the mortgages available to those with poor credit histories will also have higher rates of interest associated with them and that you will have fewer mortgages to choose from. The same rules apply to bad credit mortgages as they do to all mortgages, the bigger the deposit you are able to put down, the better the rates you can find.