Bad credit remortgages

Remortgaging with bad credit

Trying to arrange finance such as a remortgage with bad credit history can be difficult. If your credit score has been affected by falling behind on mortgage or loan repayments, you may have been refused elsewhere. A bad credit remortgage can help reshape your month-to-month situation.

We source remortgages from a comprehensive list of lenders to help those with bad credit history, and our expert team is on hand to advise and assist you through every stage of the process.

Is it possible to remortgage with bad credit?

Yes, many lenders will work with you to find a remortgage product that’s suitable for you even if you have bad credit. You may not have as many to choose from, but it’s not impossible to find a loan to suit your circumstances.

Bad credit remortgage loans may be offered with higher interest rates. This allows lenders to offset the risk when it comes to your credit rating.

How to improve your credit score before remortgaging

If you need quick results, opting for a product with a higher rate may be best. However, this will result in higher monthly repayments where the money used on the interest rate may have been better put towards the balance.

But, if you can improve your credit score, you’ll benefit from reduced interest rates and more remortgaging options.

Some lenders won't approve applications for remortgage because of a borrower’s poor credit history, as it means there’s a higher chance that you won’t be able to afford the repayments in the long run. While this is incredibly frustrating, there are a few things you can do to improve your credit score before applying for your remortgage.

You can repair your history of adverse credit by getting back on track and creating a pattern of regular payments. You can also do simple things like making sure you’re enrolled on the electoral register and using your credit card for small items that you pay back straight away.

Find out more about getting your credit score in good shape on our Know How blog.

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.

Applying for a remortgage

When it comes to getting a remortgage with poor credit, there's much to consider. It's because of this that we've tried to create a process that's as simple as possible for all homeowners.

First figure out how much you'd like to borrow, then use our straightforward remortgage calculator at the top of this page. This will help you come to a decision as to whether remortgaging is what you need.

After we've collected all your details, we'll help you navigate the next steps.

How much can I borrow?

You can borrow between £3,000 and £500,000 when remortgaging with the help of Norton Finance. With our vast panel of lenders, you'll feel the benefits of flexibility and have options to choose from. Our expert team will help you through each stage and work with you to discover the best product for your circumstances.