Bad Credit Remortgage

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Bad Credit Remortgage (Part 1)

Michael Bowdidge explains how remortgaging with bad credit works. Part one of two, recorded in September 2025.

Can you remortgage with bad credit?

The best starting point is always a full credit report. This helps us understand the specific type of adverse credit impacting your situation, as different issues affect reports differently.

Lenders also vary in how they view these problems. By reviewing your report with you, we can truly grasp what’s going on.

Can you be declined a remortgage with bad credit?

Certainly, many clients approach us after being declined elsewhere – often by their bank, which may not specialise in adverse credit mortgages. Our primary role is to identify the most suitable lender for their unique circumstances.

Once we’ve assessed their credit history – be it CCJs, defaults, or missed payments – we then find the right lender, hopefully securing an acceptance where others have failed.

Can you get a remortgage after bankruptcy or with a CCJ, IVA, or default?

Yes, you absolutely can get a mortgage with a poor credit history, though the complexity varies. CCJs (County Court Judgments) and defaults are very common, and many people successfully secure mortgages with them, often even with multiple instances.

IVAs (Individual Voluntary Arrangements) are more severe, but some lenders will consider them, depending on the debt amount and how long the IVA has been in place. Bankruptcy is the most extreme, and, while it’s challenging within the first couple of years, options become available three to five years post-bankruptcy.

In short, all these situations have their complexities, but obtaining a mortgage is definitely possible.

Can you remortgage with a debt management plan?

Debt management plans (DMPs) can often be confused with defaults or IVAs, so understanding the distinctions is key. While many high-street lenders may decline applications from those on DMPs, there are many other lenders which are more accommodating, even if you’ve been on a plan for a while.

What deals and rates are available if you are remortgaging with bad credit?

It’s tricky to give exact interest rates, as they change frequently. However, there are typically three categories of lenders. High street banks offer the lowest rates and may accept minor adverse credit, like a small default or a few missed payments, but generally not Debt Management Plans or CCJs.

The next tier of lenders charges slightly higher interest rates, perhaps 0.5% to 1% more. They have specific criteria, such as accepting CCJs or defaults up to a certain amount.

Finally, for those with multiple adverse credit issues, there’s a third category of lenders who are even more expensive. So, while a specific rate is difficult to quote, expect to pay more than what you’d see from high street lenders.

Are there many bad credit remortgage lenders?

There are numerous options available. Even some larger banks now accept CCJs below a certain amount, which is very positive – especially given that parking tickets are a common CCJ.

With over 100 mortgage lenders in the UK, more than half have criteria for adverse credit. Additionally, several lenders specifically target those with adverse credit. While they may charge a little more, many options exist for people concerned about their past credit history.

Is it better to improve my credit rating before remortgaging? How do I improve my credit score or rating before remortgaging?

While improving your credit score before remortgaging is always ideal, it’s often not feasible, due to typical remortgage deadlines of three to twelve months.

To improve your score, utilise credit reference agencies like Experian, Equifax, TransUnion, CheckMyFile or ClearScore. They all offer advice on spending, budgeting, and what positively and negatively impacts your credit report. Pick any one and review their suggestions, as they generally provide similar guidance on how to make changes and their potential impact.

How do I apply for a remortgage with bad credit? Are there any differences in this process? How can a mortgage broker help?

From a client’s perspective, the application process for a bad credit remortgage is largely the same. However, where a broker truly helps is in navigating the credit check. Traditionally, people assume a bank or lender will run a credit check, but for those with adverse credit (like missing payments, defaults, or CCJs), many lenders now require this information to be manually input into the application. This is often reviewed by a human, not an automated system.

The crucial difference is that all this information must be accurately disclosed. Even if you think you know your credit history, details can differ when you actually check your credit report. Dates might not align, or events could have occurred a few months earlier or later. These discrepancies can be critical. For example, some lenders only care about events within the last three years, and a difference of just one month could be the deciding factor.

Therefore, having your credit report to hand and sharing accurate information with your broker is vital. This allows us to find the right lender and ensure your application is spot-on, significantly increasing your chances of acceptance.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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Bad Credit Remortgage (Part 2)

Michael Bowdidge continues the conversation on remortgaging with bad credit. Part two of two, recorded in September 2025.

Can I remortgage without a credit check?

That’s a good question, and there isn’t a straightforward answer.

Generally, lenders perform a credit check to assess your credit information. While some lenders might not use an automated system and instead have a person review your application, they’ll still typically update your credit report once the mortgage is accepted.

So, in essence, you can’t really avoid a credit check.

If you’re concerned about your credit history, there are lenders who offer a more personal review process rather than relying solely on a computer system.

Can I remortgage with arrears?

Yes, it’s possible to remortgage with mortgage arrears. Lenders will want to understand the circumstances, such as a one-off event like a job loss. If your credit report shows this as an isolated incident, many lenders will be understanding. Providing the story behind the arrears is often helpful.

What is a bad credit score?

While many understand a credit score as a rating from companies like Experian, lenders actually care more about the information on your credit report rather than the score itself.

Think of a credit score as a point system within an application: providing more information, like a mobile number, helps. Lenders assess your application holistically, considering all details on your report, your personal information, income, and deposit.

It’s challenging to define a ‘good’ credit score, because high street lenders often approve individuals with what might be considered poor scores if other factors, such as good income or a substantial deposit, are strong. Therefore, don’t panic about your score; instead, speak to a mortgage broker who understands how these elements work together.

Can you release equity with bad credit?

Yes, absolutely. There are lenders available who will facilitate a remortgage and allow you to release equity as part of that transaction. I believe I’ve covered some of these aspects in earlier questions, but rest assured, it is definitely possible.

Can I remortgage if my partner has bad credit?

Absolutely. Much like the query about a ‘bad’ credit score, having one applicant with good credit and another with bad isn’t an issue. The good credit can actually improve the chances for the person with poorer credit, rather than being dragged down. So, a partner with some credit issues won’t prevent you from remortgaging.

How does credit card debt affect a remortgage? How will credit card debt affect my mortgage application?

Primarily, outstanding debts impact affordability. Lenders need to ensure you can manage your borrowing now and throughout the mortgage term.

For credit card balances, lenders typically convert this into a monthly repayment. A common method is calculating 3% of the outstanding balance, then assessing if you can still afford the mortgage with all your other outgoings. This is generally how it affects a remortgage application. It’s not necessarily an issue, as different lenders have varying ways of calculating this, and some might use your actual minimum payment, which could be lower.

Can you consolidate credit card debt twice?

Whilst it’s theoretically possible to consolidate debts multiple times, and some lenders may not object, the Financial Conduct Authority (FCA) now advises against recommending a second consolidation. This is because securing previously unsecured debts against your home carries significant, often overlooked, risks.

Many mortgage networks have also introduced rules against repeat consolidations. Our priority is to ensure clients fully understand all the ramifications, beyond just monthly savings, including the long-term cost and the potential for worsening their financial situation.

Ultimately, it’s about providing the right advice for each individual circumstance.

Is it better to have a personal loan or credit card debt when remortgaging?

That’s an interesting question, and as I touched on earlier, it primarily comes down to affordability.

If we use the 3% rule I mentioned, calculating the repayment for a fixed loan – whether for two, five years, or any other duration – is straightforward. With a credit card, however, your payments can fluctuate, and the balance – often referred to as ‘revolving credit’ – can go up and down. So, I wouldn’t necessarily say one is better than the other; it really boils down to affordability and how that impacts your borrowing capacity.

How does remortgaging a Buy to Let work with bad credit? Any differences here?

No, not at all. It’s exactly the same. There are many Buy to Let lenders and, as I mentioned earlier, when categorising them, many don’t mind some adverse credit. They are very specific about what they will accept, so in short, that one is absolutely fine. It’s very similar to the earlier questions about remortgaging with any type of adverse credit.

Have you got anything else to add?

Hopefully, I’ve covered some useful information for you. My number one tip, as I always say, is to get a copy of your credit report. Share it with your broker as soon as you speak to them; have it ready so you can both be really clear about what’s on there and how that might impact your costs. That’s the most crucial advice I can offer.

This is where a broker really adds value because we have access to so many different lenders. Once we know what’s in that credit report, we can find someone who can help you.