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 already not need to check your credit score. However, if you are applying to borrow more funds or make changes to the length or type of your mortgage, they may want to better assess your financial health by checking your credit report.
How long are the repayment terms?
We offer repayment terms ranging from three to 30 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?
Yes, we will need to arrange a valuation on your property to discover its current worth. First we will search the market for the best available rate for your circumstances and based on the estimated valuation of your property. The selected mortgage lender will then need to arrange a surveyor to call out to confirm the true value of your property.
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. Rates begin at 1.38%, and 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 7.5% of the original loan amount, but that’s always capped at £2,000.