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 remortgaging works in an adverse credit scenario 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 info@revolutionbrokers.co.uk.
Can I Get a Remortgage With Bad Credit?
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:
- 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.
Remortgages can be used for no end of reasons:
- Raising capital to consolidate your debts.
- Investing in a rental property.
- Releasing 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.