Remortgage with bad credit

If you’re looking for a way to consolidate debts and ease your financial burdens, then remortgaging your property could be an option.

Remortgage with bad credit

Naturally, bad credit mortgages are harder to set up and customers are not treated the way they wish, which can be extremely off-putting. Remortgaging with bad credit can seem like something you never thought was possible. However, with the right information and specialist assistance, it can be done (with the added bonus of not making your credit score even worse than it already is.)

There may be a few reasons you want to remortgage with bad credit; perhaps you want to raise capital for home improvements or you have parted ways with your marital partner and you want to buy them out, or it could just be that you want to find a better mortgage rate.

Why is it difficult to remortgage with bad credit?

For a lender, there’s a large element of risk involved when dealing with those who have bad credit. Some lenders don’t want to involve themselves in a situation where a customer may not be able to repay their debt.

In a bid to protect themselves against any risk, lenders will normally increase the amount of deposit you initially pay or the interest you pay on the loan per month, so remortgaging with bad credit won’t be handed to you on a plate with no element of risk involved.

The risk of remortgaging comes from both sides of the deal. As is the case with most loans and lending agreements, if you are unable to repay your monthly sum, you risk losing repossession of your property.

To begin the process, it’s worth knowing what credit issues are acceptable when it comes to remortgaging to see if it’s an option worth considering:

  • No credit history
  • Low credit score
  • Late payments
  • Missed mortgage payments
  • Defaults
  • CCJ’s
  • IVA’s
  • Debt management schemes
  • Repossessions
  • Bankruptcy
  • Payday loans

How to remortgage with bad credit

Remortgaging with bad credit is not a black and white situation, each case is often different, so the process undertaken by one person may not necessarily be applicable to you. However, there are a few steps you can take that will hopefully make the process hassle-free.

When you are looking to remortgage with bad credit history, getting a credit report should be one of the first things you do. It’s important to know where you stand and the credit issues that will personally impact you.

Going to a bank can seem like the first port of call for financial advice, but they can leave you in a poorer position than you were initially. Banks often credit score every customer straight away, regardless of whether you go ahead with whatever they propose. The result of this application will be added to your credit score, which in some cases can make you worse off, making it even more difficult to go with another lender.

It’s important to take the time to evaluate whether you should remortgage with bad credit and the risk involved shouldn’t be taken lightly.

How We Can Help You

You need a Mortgage Advisor you can trust and we are rated one of the Top Twenty Mortgage Brokers in the UK on Trustpilot.

Why? By using our extensive knowledge and experience within estate agency Mortgage Services, we not only help you secure the right mortgage, we also help you find the right home. From arranging viewings, negotiating on the price, to picking up the keys to your new home, our mortgage advisors are here every step of the way. We also have exclusive mortgage deals that you won’t find on the high street and we offer far more than a 9-5 service.

You’ll never experience a hard sell from us either, as ultimately, we’re here to provide you with the service you would expect along with saving you money! We aim to take the stress out of purchasing a property and we’re happy to discuss your needs in a consultation.

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