Can I remortgage with bad credit?

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.

Can I get a 95% mortgage with bad credit?

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.

What information will I need to remortgage?

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

Are there any fees involved in remortgaging?

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

How much does remortgaging cost?

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

How much can I borrow with a remortgage?

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.

How does remortgaging work?

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.

How can I remortgage to release equity?

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.

Do I need a solicitor to remortgage?

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.

Can you remortgage early?

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.