Tips for Remortgaging with a Bad Credit Score
Remortgaging is a great way to raise capital, perhaps consolidate debts, and achieve a better interest rate and lower your monthly expenses.
However, many homeowners find themselves being turned down for a remortgage based on their credit score - making it a Catch-22 situation!
In this article, the mortgage brokers team explains how to get a remortgage with bad credit and what a lender will look for in your application.
If you'd like tailored help finding a mortgage from an independent bad credit specialist, contact Revolution on 0330 304 3040 or email us at [email protected].
Can I Remortgage With Bad Credit History?
It is always possible - but the right lender and mortgage product will depend very much on what sort of bad credit issues you have and when they occurred. There are two primary options if you’re unsure how to get a remortgage with bad credit:
- Remortgaging your current deal with an additional value to pay off your debts.
- Taking out a second charge mortgage designed for bad credit applicants.
While many high street banks will automatically reject any bad credit applicant, thousands of niche providers take a more flexible approach to mortgage lending.
You can remortgage with bad credit whether you own the property outright (called an unencumbered mortgage) or whether you have a mortgage and want to replace it with a larger or more competitive deal.
Can I remortgage with bad credit history for any reason? You might remortgage to:
- Raise capital to consolidate your debts.
- Invest in a rental property.
- Release equity to pay for renovations, a car or a family event.
The key is always to ensure you apply to a lender who can consider your remortgage application within their lending criteria.
Your first port of call is to check out your credit reports and ensure you're 100% clear on what issues show, so you can provide context or information to reduce the perceived lender's risk.
