Bad credit remortgaging is not suitable for everyone. Before you agree to a deal, make sure you understand whether any of the following points affect you:

Will you have to pay any early repayment fees on your existing mortgage? If so how much are they – it might be cheaper not to remortgage

Most bad credit remortgaging requires you to have at least a 5% deposit or 5% equity in your home. There are some 100% deals, but these usually have higher interest rates.

Consolidating your debts and paying them back over a longer period may mean that you pay more interest in total than you would have done originally, even though your monthly payments are lower.

Don’t apply direct to high street mortgage lenders who will be likely to reject you – this will show up on your credit history and make it more difficult for you to get a remortgage. The best approach is to talk to an independent mortgage broker who specialises in bad credit remortgages and let them find you a suitable lender who won’t reject your application.

You may see lenders talk about “sub-prime” or “adverse credit” remortgaging – these are the same as bad credit remortgaging.

 

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