Yes, it is absolutely possible to remortgage even if you have bad credit. Deedle can match you with a lender no matter what you credit score may be.
However, the availability of options and the terms you may receive could be limited. Lenders consider your credit history as a key factor in assessing your risk as a borrower, so having bad credit may result in:
Lenders will carefully assess your credit score, payment history, and overall creditworthiness when considering your remortgage application.
Bad credit can impact your remortgage options in several ways, including:
With a fixed rate remortgage, the interest rate is fixed for a specific period, usually between 2 and 10 years. This means your monthly mortgage payments remain the same during the fixed term, providing stability and predictability. It can be a great choice if you prefer budgeting with a consistent payment amount.
A variable rate remortgage has an interest rate that can fluctuate over time. It is often linked to a base rate, such as the Bank of England Base Rate, and can go up or down. This allows buyers to benefit from lower interest rates if they decrease, but they may be saddled with higher payments if rates increase.
A discounted rate remortgage offers a reduced interest rate for a specified period, typically for the first few years of the mortgage term. The discount is applied to the lender’s standard variable rate (SVR). While it can provide initial savings, keep in mind that the rate will eventually revert to the higher SVR.
At Deedle, we understand the anxiety that can come with remortgaging a property, and we’re here to offer our expert assistance. Our committed team of mortgage advisors will guide you every step of the way, starting from the initial consultation until the day your remortgage is arranged. We handle all the necessary paperwork, liaise with lenders on your behalf, and ensure a seamless process, saving you time, stress, and energy.
Whether you have a less-than-perfect credit history, are self-employed, or even in retirement, our team of knowledgeable experts is here to assist you in finding the perfect mortgage solution for your needs. With our extensive experience in the mortgage industry, we meticulously search through a vast array of mortgage deals to identify the one that best suits your specific circumstances and requirements.
While improving your credit score takes time, there are steps you can take to enhance your chances of remortgaging with bad credit:
Although options may be limited, there are remortgage products available for individuals with bad credit. Some possible options include:
Remortgaging with bad credit can be a great option but it also carries certain risks that you should be aware of:
Yes, brokers who specialise in bad credit remortgages can be extremely helpful. Brokers like Deedle have access to a wide range of lenders and can help you navigate through the complexities of remortgaging with bad credit. We can even negotiate on your behalf to secure the best terms possible. Our expertise can save you time, simplify the process, and potentially increase your chances of approval.
No, but having a co-signer or guarantor can improve your chances of remortgaging with bad credit. A co-signer is jointly responsible for the mortgage repayments and shares the risk with you. A guarantor, on the other hand, provides a financial guarantee to the lender, promising to cover the repayments if you fail to do so.
Yes, eventually. Most lenders will require a period of time to have passed since your bankruptcy discharge, typically a minimum of 3-6 years, before considering your remortgage application, but it is possible.
Yes, when remortgaging with bad credit lenders may require additional documentation to assess your financial situation more thoroughly. This may include bank statements, proof of income, proof of employment and details of your outstanding debts.
If you are remortgaging a Help to Buy home, you may need to check the gov.uk page about how to navigate this.
Yes, it can have a positive impact over time. Demonstrating responsible financial behaviour can gradually improve your credit score, making it easier to access better mortgage terms in the future. However, you should not take out a remortgage for the purpose of improving your credit score as this is a huge commitment.
