Remortgage’s

In 2021, the government launched the mortgage guarantee scheme aimed at helping buyers who have only 5-9% deposit.

Not all lenders use the scheme. That means you’ll have less to choose from which might make it harder to find a lender that’s both on the scheme and able to lend to people who’ve had credit problems.

But the lenders that are on the scheme use the same affordability and eligibility criteria as a standard mortgage, which means some might still consider you if you’ve had credit problems.

It’s possible to remortgage with bad credit, especially if your credit problems are quite minor, like a single late payment.

As with any other mortgage applicant, you won’t be eligible for some of the better deals available to those with good credit. Interest rates and fees will be higher.

Use a free online credit report service. You’ll have to provide details about your banking and credit accounts to access your report.

Alternatively you can get a FREE trial with Check my File here, Try it FREE for 30 days, then £14.99 a month – cancel online anytime

It’s likely you’ll have to wait until your bankruptcy is removed from your credit record, which can be six years from the date of your bankruptcy

If you’ve fallen behind on mortgage payments, or even had a home repossessed, finding a mortgage again can be quite difficult. But it’s not impossible.

You’ll have to rebuild your credit score by paying all bills on time. And you’ll probably need to use a mortgage adviser to apply to a lender that might accept you – despite having a past repossession.

How much you can borrow for a BTL mortgage usually boils down to the amount of rental income that you’re expecting to receive from the tenants of the property.

Although there are lenders offering BTL mortgages with no borrowing limit, eligibility assessments are still stringent, and applicants are advised to acquire a rental income forecast from an ARLA-regulated letting agent.

While the majority of buy-to-let mortgage providers base affordability on projected rental income, some will only agree to lend if you bring in a certain amount from other sources – regardless of whether you intend your investment to be self-funding.

If you don’t receive any additional income, seek advice from a broker. They are familiar with the buy-to-let mortgage market, and can point you in the direction of lenders most likely to consider applications based on rental income alone.

Deposit requirements for buy-to-let mortgages are far higher than residential ones, as they are considered a riskier investment.

The standard loan-to-value (LTV) for BTL is around 75-80%, which translates to 20-25% deposit – although some providers may be more generous for the right applicant. Likewise, if you pose a greater risk in other areas (e.g. bad credit or low rental yield), a lender may have higher deposit requirements to balance out the risk.

Generally speaking, the more deposit you’re able to put down, the greater the lender pool and the more favourable the interest rates you’re likely to be offered.

While mortgage providers can be reluctant to lend to people with bad credit history, plenty of lenders are happy to take the bigger picture into account before coming to a decision. There are even specialist bad credit mortgage providers out there.

The type of bad credit, how long ago it occurred and the circumstances surrounding it will impact which lenders are available, the type of products you qualify for, and under what terms. Depending on your situation, you may be asked to pay a higher deposit to offset the added risk, or you may be offered less competitive rates than someone with clean credit.

There are a number of variables at play, so if you have poor credit you’re best off discussing your circumstances with a broker, who can explain your options and point you in the direction of lenders most likely to consider your application.

Most mortgage providers won’t lend to BTL borrowers unless they already own their own home, and some will stipulate that you have to have been a homeowner for over a certain amount of time.

Generally speaking, BTL mortgage providers favour customers with landlord experience, as evidence of a strong track record of managing rental properties will provide additional support to your application.

There are however some providers who are willing to consider BTL applicants that are first-time landlords or even first-time buyers, although you may be limited in your choice of lenders, and there could be caveats attached.

As a general rule, most BTL lenders will only consider applicants over the age of 21 for a BTL mortgage. This is because lenders like to see proof of your ability to manage money (stable income, solid affordability and clean credit) over a minimum three year period.

The number of lenders you have access to may also be limited if you’re over the age of 75; many mortgage providers have maximum age caps for how old you are when you take the mortgage out, and your age when the term finishes.

If you’re concerned that your age will negatively impact your BTL application, get in touch to discuss your options with a broker; they will be able to advise you on next steps, and point you in the direction of specialist lenders with more flexible criteria.

If you’ve got the means and opportunity, becoming a landlord can be a tempting investment prospect. But it’s important to understand the market and what you’re letting yourself in for – why not ask a mortgage broker to explain the process in more detail?

Typically, around four to eight weeks from application, but this will depend on a number of factors such as whether you are looking for a like-for-like deal or if you want to increase the amount you borrow. If you are just looking for a better deal for your existing property and your affordability hasn’t changed – or has improved – you are well place for the deal to progress quickly.

Yes, but it will depend on the terms and conditions of your existing mortgage – and may work out expensive. Many mortgages have an early repayment charge , which can mean it’s cost prohibitive to remortgage before the end of the introductory period. But even if you’re locked into a deal, you don’t have to wait before looking at alternatives. From three to six months before the deal expires, you can have a remortgage in place ready to go.

You don’t have to use a solicitor, but it can take the worry out of making sure that the deeds of the mortgage are safely transferred to the new lender. Fortunately, most remortgages include a free legal package so your lender will take on the cost of the solicitor. Remortgaging is also generally more straightforward than a new mortgage so any costs incurred should be lower.

Remortgaging to release equity means borrowing more than with your existing mortgage. If you’re nearing the end of your current deal, you could look to remortgage for a larger amount, but this will depend on your affordability and what percentage of the property’s value you are looking to borrow. If you can’t or don’t want to change your initial mortgage, alternatives include taking out a second mortgage on the property.

Remortgaging happens when you change the mortgage you currently have on your property, either by switching it to a new lender, or by moving to a different deal with your existing lender.

Remortgaging happens when you change the mortgage you currently have on your property, either by switching it to a new lender, or by moving to a different deal with your existing lender.

The main cost of your remortgage will be decided by the interest rate your lender sets. They’ll usually decide this by considering the following factors:

• Your loan to value
• Your credit history

You should always factor in the fees you’ll need to pay before remortgaging, which can include:

• Arrangement fees: Most mortgages have arrangement fees which range from around £100 up to a couple of thousand pounds. Mortgage deals with the keenest rates tend to have the highest fee
• Legal fees: You might have to pay for a solicitor to take care of any legal matters if you’re looking to remortgage with a different lender

• Admin fees: The lender might charge for the cost of setting up your remortgage 
• Valuation: You’ll need to have your property valued so the lender can see its current market value – to check the loan to value ratio of the mortgage is correct

Your lender will ask you to gather a few documents to complete a remortgage. These might include:

• Your last three months’ bank statement
• Your last three months’ pay slips
• Your last two to three years’ accounts/tax returns if self-employed 
• Your latest P60 tax form (showing income and tax paid from each tax year)
• Passport or driving licence
• Proof of address, through utility/council tax bills