Bad Credit Remortgages: Questions and Answers

Question: How is a bad credit remortgage different to a normal remortgage?

Answer: The main difference is that bad credit remortgaging is intended for people who either have bad credit ratings or are experiencing problems managing their present debts.

These borrowers require specialist mortgage deals, as most high street lenders will not give them mortgages.

Question: Can I get a bad credit remortgage however bad my finances are?

Answer: Although specialist bad credit mortgage companies are very flexible, there are some restrictions:


  • You must be able to afford the new monthly payments
  • You must have enough equity in your home to cover the debts you want to consolidate (if any)
  • If you have a bad credit rating, you may be required to provide proof of your current income and outgoings


Question: Do bad credit remortgages have much higher interest rates than mainstream mortgages?

Answer: Interest rates are usually a little higher, due to the increased risk of you being unable to keep up with your repayments.

However, lenders are much more flexible than they used to be, and interest rates are often not that much higher than on the high street, particularly if you can show that you have put your money problems behind you.

What you do want to watch out for are extra fees you might be charged either by the lender or the broker.

People who have bad credit might feel more desperate to get any deal in place. And there are people out there waiting to exploit that situation by over charging.

Simply make sure you shop around. Always get three quotes – but tell each broker you do not want your enquiry to go on any lenders records. This would be unlikely but the fact you have asked will show you know at least a little about your situation. This will make them think twice about trying to charge you some ridiculous fee.

Question: Will having a bad credit remortgage and keeping up with the payments help improve my credit rating?

Answer: Yes, most definitely.

If your other debts are paid off and you keep up with your remortgage payments each month, your credit rating will gradually begin to be repaired.

Making regular repayments on a loan or mortgage is one of the best ways to improve your credit rating.


Read More About Bad Credit Ratings