What Is A Bad Credit Remortgage?

A bad credit remortgage is a remortgage deal designed to help you if you have a bad credit rating – either because you are currently having some money problems, or because you have had some financial difficulties in the past and have been left with a poor credit rating.

 

There Are Two Possibilities:

You can borrow against the equity in your home to raise some cash or to pay off some of your other debts

You can remortgage to reduce your monthly payments – this usually means extending the term (length) of your mortgage

Either way, the end result should be a more manageable monthly repayment, hopefully allowing you to get your finances under control.

 

A Bad Credit Remortgage Will Generally Offer Two Benefits:

Reduced monthly payments (over a longer term)

The chance to consolidate your other debts into one lower interest loan, with more manageable repayments, or to release some equity from your house as cash

 

Getting A Bad Credit Remortgage can help you begin to improve your credit rating too – by clearing your other debts and keeping up with the payments on your remortgage, your credit rating will gradually improve again.

However, you should understand that even though the interest rate of your bad credit remortgage is lower, your total interest payments may be greater, due to the longer length of the loan.

 

Read More About Bad Credit Ratings

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