Commonly asked questions about bad credit remortgages
There are a number of questions to ask when deciding whether a bad credit remortgage is the right path to take for your situation. Find out more below.
Do I need a credit check to remortgage?
Not always – if you decide to apply for a remortgage with your current mortgage lender, they may not need to check your credit score as you have a proven track record. However, if you are applying to borrow more funds or make changes to the length or type of your mortgage, they may want to take a closer look at your financial health by checking your credit report.
How long are the repayment terms?
We offer repayment terms ranging from three to 40 years, meaning you can choose the right product for you and your situation. What you decide is entirely dependent on your circumstances. Our knowledgeable team will be able to help guide you through the process.
Do I need a valuation?
You may need to get a valuation on your property or know what it is currently worth. This will give you an idea of how much you may be able to borrow and if you could find a better deal elsewhere.
What are the interest rates?
Interest rates from bad credit mortgage lenders may be higher than those for borrowers who have good credit scores. The interest rate you are offered will depend entirely on your financial situation, but the flexibility of choice from our panel of lenders means you'll be able to find the most suitable rates possible.
Can I stay on my current lender’s standard variable rate (SVR)?
You can choose to remain on your lender’s SVR once you reach the end of the fixed deal, but it’s always worth browsing the market first. Other lenders may be able to offer you a better deal, or your current lender may have more options you are not aware of. Talk to your current provider and shop around before you make a decision.
Can I apply for more than one mortgage?
Yes, you can apply for more than one mortgage. This will be subject to the equity in your property and an affordability assessment looking at your total income and outgoings. When taking out a second mortgage, it is always better to take some advice on the available options from a reputable mortgage broker.
In terms of your credit rating, taking out an additional mortgage doesn’t necessarily impact your credit score. Most lenders run soft searches on your credit history at the application stage, which doesn’t affect your credit score even if you make more than one application at a time.
If you are thinking of applying for a second mortgage, you must be sure you can afford the repayments, as taking further unaffordable credit is likely to harm your credit score.
For more on the different types of credit search, see our guide.
Are there any remortgage fees?
As we are a mortgage broker we obtain our commission from the lender and we may charge a broker fee of £995.00 and for customers who require a specialist lender, we will charge a fee of 12.5% of the loan amount capped at a maximum of £4950 for our services.