How To Get a Remortgage With Bad Credit

Can You Remortgage with Bad Credit?

Yes, it’s possible. There are lots of different types of bad credit that can be registered on your Credit Report, and lenders will consider some more severe than others. So, it really depends on the type of bad credit issue you’ve had, when it happened, and the amounts involved. 

If you’re worried about how your credit history could affect your chances of remortgaging, don’t panic! There are several specialist lenders available who look at the bigger picture, not just your credit score, to help people in your situation get the remortgage they need.

For any remortgage applicant who has had credit issues, lenders will simply want to see proof that you can afford the repayments now. Having a steady income and evidence of managing your debts responsibly since the credit issue occurred will definitely improve your chances. 

Also, seeking the help of a mortgage broker who specialises in bad credit remortgages can be a game-changer in finding the right lender for your situation.

What Effect Can Bad Credit Have?

Your credit score plays a big role in the terms you’ll be offered when remortgaging. Here’s how it could impact your application:

• Higher interest rates – Lenders see bad credit as higher risk, so they may charge more in interest.

• Lower loan-to-value (LTV) limits – You may be able to borrow less compared to someone with a good credit score.

• Fewer lender options – Many high street banks may decline your application, but there are specialist lenders who will consider you.

• Stricter affordability checks – Lenders will closely review your income, spending, and existing debts to ensure you can afford the remortgage.

This is definitely where working with an experienced mortgage broker who understands how a bad credit score could affect a remortgage application can make a huge difference. 

They can help you find lenders who are more flexible with their criteria and assess each application on its own merits. 

What Types of Bad Credit Can Affect a Remortgage?

Not all bad credit issues are viewed in the same way by mortgage lenders. Some types of bad credit are considered more serious than others. Here’s how different credit issues might impact your remortgage:

• Late or missed payments : A few occasional missed payments may not be a dealbreaker, but frequent or recent missed payments can make it harder.

• Defaults: If you've defaulted on loans or credit cards, some lenders may require a larger deposit or offer higher interest rates.

• County Court Judgments (CCJs): A CCJ on your file can limit your options, but some lenders will still consider your remortgage application, especially if it’s been satisfied.

• Individual Voluntary Arrangement (IVA): Lenders will usually want your IVA to be completed before they consider you.

• Bankruptcy: If you've been bankrupt, you'll typically need to wait at least three years after discharge before remortgaging.

Which Mortgage Lenders Can Help?

In reality, pretty much every mortgage lender will have some leeway to accept a remortgage application that might not come complete with a perfect credit score. But, it’s usually much harder to be accepted by larger, mainstream banks, particularly if the credit issue recorded on your report is fairly recent and more severe, rather than minor. 

If you already know adverse credit is still recorded on your credit history, rather than take the chance of being rejected by a high street mortgage lender, the smarter move is to look for a specialist mortgage lender with experience of helping people in similar situations. 

That’s where we can help! 

What Credit Score Do You Need for a Remortgage?

There isn’t one specific credit score that guarantees your remortgage application will be approved. There are two main reasons for that:

1. Mortgage lending criteria. In addition to your credit score, mortgage lenders will also look at and consider a range of other factors, including your income and outgoings, age, employment record, property type and amount of equity in your home - all of which can play a part in determining whether your remortgage is approved or not. 

2. Credit Reference Agencies (CRAs). Each of the main CRAs - Experian, Equifax and TransUnion - all use different scoring systems and scales to determine good scores and bad scores, and it depends on which CRA score the lender uses when assessing remortgage applications. 

Check Your Credit Score Before Remortgaging

Regularly reviewing your credit record is a smart way of keeping on top of your credit history and is highly recommended. Checking your credit score before applying for your remortgage can help you:

• Spot any errors and correct them.

• Understand how lenders will view your application.

• Signal whether you need to improve your score before applying.

• Avoid multiple hard credit searches by different mortgage lenders, which can temporarily lower your score.

Want to check your credit score right now? Rather than approaching each Credit Reference Agency (CRA) separately, we recommend using Checkmyfile, where you'll receive a report and credit score based on information compiled from all three.

Checkmyfile allows you to download your report for free with a 30-day trial and then £14.99 monthly (you can cancel anytime). 

*When you click through to our affiliate links, we may earn a small commission. We only recommend sites we trust and believe in. 

How to Improve Your Credit Score

Taking steps to boost your credit score before applying can make a big difference to your chances of securing the remortgage you need. Here are some useful tips on how to do it:

• Register on the electoral roll – It’s a quick and easy way to improve your credit profile.

• Make all payments on time – This shows lenders you’re financially responsible.

• Reduce outstanding debt – Lower credit card balances and paying off loans can help improve your score.

• Avoid new credit applications – Multiple credit checks can lower your score temporarily.

• Check your credit report for errors – Fixing mistakes can instantly improve your rating.

Even small improvements to your credit record can open up better remortgage options for you.

Can You Get a Joint Remortgage with Bad Credit?

Yes, it’s possible. The same will apply to joint applicants as for sole applicants - it really depends on the type of credit issue you’ve had, how long since it occurred and how much it was for. 

If only one of the applicants has bad credit, a mortgage lender will focus on the possible impact this could have on the overall application. If one of the applicants has a good credit score, then this will certainly help with getting the approval you need.