Bad Credit History Remortgages - Switch Deals Despite Poor Credit

What Are Bad Credit History Remortgages?

A remortgage means switching your existing mortgage to a new deal, either with your current lender or a different one. They work the same way, but they're designed for homeowners whose credit files contain issues like CCJs, defaults, missed payments, or low credit scores.

Here's the reality: most high street banks use automated systems that decline applications based purely on credit scores. They don't see that you've paid your mortgage perfectly for three years despite having a CCJ. They don't care that your default was from a business failure during COVID. They just see numbers and hit "decline."

Bad credit history remortgages use specialist lenders who actually assess your circumstances. They look at your mortgage payment history, your current income, and your reasons for past credit issues. This human approach means homeowners who'd be automatically declined by mainstream banks can access competitive rates through specialist remortgages.

Take Emma from Atherton as an example. She had two defaults from 2021 and a CCJ from 2022 after her partner left and she struggled financially. Her credit score was 420. When her two-year fixed rate ended, her bank offered her 6.2% to stay. She assumed no one else would touch her. Sarah found Emma a remortgage at 4.8%, saving her £247 per month. Emma's mortgage payment history was perfect – that's what mattered to the specialist lender.

Why Remortgage With Bad Credit History?

You might wonder whether remortgages are worth the effort. Can't you just stay with your current lender? Technically yes, but here's why that's often a costly mistake:

Your Fixed Rate Is Ending: When your fixed period ends, you automatically move to your lender's standard variable rate (SVR). These rates are typically 2-3% higher than new fixed rates. For someone with a £150,000 mortgage, that's £250-£375 more per month. A remortgage can secure a new fixed rate instead of accepting the SVR.

You're Paying Too Much: Maybe you took your current mortgage when your credit was worse, or you had limited options at the time. Your circumstances might have improved – you've been paying on time, your credit issues are older, or your income has increased. Bad credit remortgages with better rates could now be available.

You Need to Release Equity: Home improvements, debt consolidation, or major expenses – sometimes you need access to the equity in your property. Remortgages can release funds while potentially getting you a better rate than your current deal.

Your Current Deal Is Uncompetitive: Interest rates fluctuate. Perhaps rates have dropped since you fixed, or specialist lenders have become more competitive. Shopping around for bad Remortgages every few years ensures you're not overpaying unnecessarily.

Can You Get Bad Credit History Remortgages?

The honest answer: it depends. But you'd be surprised how often the answer is yes, even when homeowners assume it'll be no.

Lenders offering remortgages will consider applications from people with:

• County Court Judgements (CCJs) – satisfied or unsatisfied
• Defaults on credit agreements
• Missed mortgage payments (depending on how recent and how many)
• Debt management plans or IVAs
• Low credit scores (300-550 range)
• Previous mortgage arrears (if now cleared or managed)
• Discharged bankruptcies (typically 3+ years ago)
• Repossession history (usually 6+ years ago)

What makes bad credit remortgages possible when you'd expect decline? Several factors:

Your Mortgage Payment Track Record: This is huge. If you've maintained your mortgage payments despite other credit issues, it demonstrates you prioritize your home. Specialist lenders for bad credit history remortgages weight this heavily.

Time Since Credit Issues: A CCJ from four years ago matters less than one from four months ago. Most bad credit lenders prefer issues that are at least 12-24 months old, though some will consider more recent problems.

How Severe Your Credit Issues Are: One £500 default differs from six defaults totaling £15,000. The number, value, and type of issues affect which bad credit lenders will consider you.

Your Current Circumstances: Stable income, reasonable loan-to-value, and demonstrable affordability strengthen applications for remortgage. Lenders care about your ability to maintain repayments going forward.

Bad Credit History Remortgages Rates - What to Expect

Let's be realistic about rates for bad credit remortgages. You won't get the absolute lowest rates advertised – those are for applicants with pristine credit. But you can access competitive rates that save you money compared to standard variable rates or your current deal.

Typical rates for these remortgages range from 3.5% to 7%, depending on:

Severity of Credit Issues: Minor issues from years ago might get you 3.5-4.5%. More recent or serious problems might mean 5-7%. The worse your credit, the higher the rate – but bad credit remortgages are still usually cheaper than staying on SVR.

Loan-to-Value (LTV): More equity means better rates. At 60% LTV, you'll access better remortgage rates than at 85% LTV. Every 5% more equity you have typically reduces your rate by 0.1-0.3%.

Mortgage Payment History: Perfect payment history on your current mortgage for 12-24 months can reduce rates by 0.5-1% compared to applicants with recent mortgage arrears seeking bad credit history remortgages.

Here's a practical comparison:

£180,000 mortgage at 6.5% SVR = £1,139 per month
£180,000 remortgage at 4.8% = £994 per month
Savings: £145 per month / £1,740 per year

Even if your bad credit history remortgages rate isn't the lowest available, the savings compared to SVR are substantial. Over a two-year fixed term, that's £3,480 in your pocket instead of the lender's.

The Bad Credit History Remortgages Process

Getting bad credit history remortgages isn't as complicated as many homeowners fear. Here's what to expect:

Step 1: Initial Consultation
Sarah reviews your current mortgage, credit history, and goals in a free consultation. This includes understanding what you're currently paying, when your deal ends, and what issues are on your credit file. Honesty matters – we can only find suitable bad credit history remortgages if we know the full picture.

Step 2: Credit File Review
We obtain your credit report to see exactly what lenders will see. Sometimes clients discover errors that, once corrected, improve their options. Understanding your credit situation helps us identify which bad credit history remortgages lenders are most likely to approve you.

Step 3: Affordability Assessment
Lenders want to ensure you can afford the remortgage repayments. We assess your income, outgoings, and any changes since your current mortgage. If you're releasing equity, we calculate whether the new payment is sustainable.

Step 4: Lender Selection
Not all bad credit lenders are the same. Some specialize in recent credit issues, others in older problems, and some focus on specific employment types or property situations. Sarah matches you with lenders most likely to approve your bad credit history remortgages application at competitive rates.

Step 5: Application Preparation
We gather all required documents – proof of income, bank statements, mortgage statement, identification, and property details. For bad credit history remortgages, we also prepare supporting information explaining your credit issues and demonstrating your current stability.

Step 6: Valuation and Underwriting
The new lender values your property and underwrites your application. For bad credit remortgages, underwriters manually review cases rather than using automated decisioning. This takes longer but allows for nuanced assessment of your circumstances.

Step 7: Offer and Completion
Once approved, you receive a formal mortgage offer. Solicitors handle the legal work, paying off your old mortgage and registering the new one. Most bad credit history remortgages complete within 4-8 weeks from application to completion.

Bad Credit History Remortgages vs Staying Put

Should you pursue bad credit history remortgages or just stick with your current lender? Let's compare:

Advantages of Remortgaging:

Lower rates save you thousands over the fixed period. Bad credit remortgages with specialist lenders often beat what your current lender offers you to stay, especially if you're moving to SVR.

Access to equity without taking a second charge loan. If you need funds, remortgaging can be cheaper than secured loans for raising capital.

Potential to improve your situation as your credit recovers. Successfully completing bad credit history remortgages shows future lenders you're managing credit responsibly, potentially opening better options next time.

Advantages of Staying:

No application fees, valuation costs, or legal fees. Remortgaging involves costs, typically £1,000-£2,000. If your current lender offers a competitive rate to stay, it might not be worth the expense.

Faster process – you can switch products with your current lender in days rather than weeks. No underwriting or valuation required for product transfers.

No risk of decline. Staying with your current lender avoids the possibility of application decline, which can affect credit scores.

The key question: will the savings from bad credit history remortgages outweigh the costs? Sarah can calculate this based on your specific situation, showing you whether remortgaging makes financial sense.

How We Help With Bad Credit History Remortgages

Why work with a mortgage adviser for bad credit remortgages rather than going direct to lenders?

Specialist Lender Access: Many lenders offering bad credit history remortgages don't deal directly with the public. They work exclusively through qualified advisers. Going direct limits you to the handful of lenders with direct-to-consumer options – usually the ones with the highest rates.

Prevented Declines: Every decline leaves a footprint on your credit file, making subsequent bad credit history remortgages applications harder. We identify the right lender first time, submitting only when confident of approval.

Market Knowledge: Lending criteria change monthly. What one lender declined six months ago might now be acceptable. Sarah stays current with which lenders are most competitive for bad credit history remortgages in different scenarios.

Application Presentation: How you present bad credit issues matters enormously. We explain circumstances in ways that resonate with underwriters, providing context that helps them say yes to bad credit history remortgages applications they might otherwise decline.

Full Process Management: From initial consultation through to completion, Sarah manages your bad credit history remortgages application. We chase lenders, respond to queries, and keep you informed throughout the process.

Sarah works with clients across Greater Manchester, including Leigh, Atherton, Tyldesley, Bolton, and Wigan. Understanding local property values and typical income levels helps us present bad credit history remortgages applications effectively to lenders.

We also help clients who might benefit from specialist mortgage advice for bad credit or those considering secured loans as an alternative to remortgaging.

Frequently Asked Questions About Bad Credit History Remortgages

How long after a CCJ can I get a remortgage?
Some specialist lenders will consider applications within 6 months of a CCJ, though you'll access better rates after 12-24 months. The older the CCJ, the less impact it has on remortgages availability and rates.

Will bad credit history remortgages improve my credit score?
Successfully completing a remortgage and maintaining payments builds positive credit history. However, the initial application creates a hard search on your file. The long-term benefit of demonstrating responsible mortgage management outweighs the short-term impact.

Can I get bad credit history remortgages if I've missed mortgage payments?
It depends on how many, how recent, and the circumstances. One missed payment from 18 months ago is very different from multiple arrears from last month. Most lenders want to see 12 months of clean mortgage payment history before considering bad credit remortgages applications.

What if my fixed rate doesn't end for another year?
You can still explore your remortgage options now. Early repayment charges (ERCs) might apply if you remortgage before your fixed term ends, but sometimes the long-term savings justify paying ERCs. Sarah can calculate whether it makes financial sense in your situation.

Do I need a certain credit score for bad credit history remortgages?
There's no universal minimum score. Different lenders have different criteria. Some bd credit remortgage lenders work with scores as low as 300-400. Your mortgage payment history often matters more than your overall credit score.

Can I release equity with bad credit history remortgages?
Yes, subject to affordability and loan-to-value limits. Many homeowners use bad credit history remortgages to release equity for debt consolidation, home improvements, or other purposes. The amount you can release depends on your property value, existing mortgage, and current equity position.

Will my partner's bad credit affect our bad credit history remortgages application?
If you're applying jointly, both credit files matter. However, if the property and mortgage are solely in your name and you can afford repayments on your income alone, your partner's credit might not affect the application. This varies by lender.

How long do bad credit history remortgages take to complete?
Typically 4-8 weeks from application to completion. This is longer than product transfers with your existing lender (which take days) but similar to standard remortgages. Complex cases or busy periods might extend to 8-12 weeks.

Can I get bad credit history remortgages if I'm self-employed?
Yes. Self-employed applicants can access bad credit remortgages, though you'll typically need 1-2 years of accounts or tax returns. Some specialist lenders are more flexible with self-employed income assessment than high street banks. If you're self-employed, read our guide on mortgages for self-employed with bad credit.

What happens if I'm declined for bad credit history remortgages?
First, we'd identify why you were declined and whether other lenders might take a different view. Sometimes waiting 3-6 months while improving your circumstances opens new options. Alternatives might include staying with your current lender, considering secured loans instead, or working on credit improvement before reapplying.

When Bad Credit History Remortgages Might Not Be Right

Honesty matters. Bad credit remortgages aren't always the best solution. You might be better staying put if:

Your current lender offers you a competitive rate to stay that beats what you can access elsewhere after accounting for remortgage costs.

You're within 6-12 months of your credit issues dropping off your file entirely (they disappear after 6 years). Waiting might open significantly better rates.

Your current deal has substantial early repayment charges and your existing rate is already competitive. The savings wouldn't justify the ERCs and remortgage costs.

You're planning to move home within 12 months. The costs of a remortgage might not be recouped before you move.

Your affordability has worsened since your current mortgage. Lenders assess current circumstances, and if you can't demonstrate affordability, bad credit remortgages applications will be declined.

Sarah provides honest advice. If remortgaging doesn't make financial sense, we'll tell you and explore alternatives. Sometimes the best advice is to wait, work on credit improvement, and revisit bad credit history remortgages in 6-12 months when you'll access better terms.

If you're looking to improve your credit before applying, read our detailed guide on how to improve your credit score for mortgages.

Take Your Next Step

You've made it this far, which suggests a bad credit remortgage might be relevant to you. Whether your fixed rate is ending soon, you're stuck on SVR, or you're simply curious about your options, the next step is straightforward.

Have a conversation with Sarah. There's no obligation, no pressure, and no cost for an initial consultation. We'll review your current mortgage, assess your credit situation, and calculate whether a remortgage could save you money.

Many clients wish they'd reached out sooner. They assumed their credit file meant no options, so they stayed on expensive rates for years, costing them thousands. Bad credit remortgages exist specifically for people in your situation – homeowners who've had credit setbacks but are now managing their mortgage responsibly.

The consultation gives you clarity. You'll understand what rates you might access, which lenders might consider you, and whether the savings justify the effort. Even if now isn't the right time, you'll have a roadmap for when it is.

Related Resources

For more information about mortgages, remortgaging, and managing bad credit:

• Mortgage Broker Bad Credit History - Specialist mortgage advice for adverse credit cases
• Secured Loan With Bad Credit History - Alternative to remortgaging for raising funds
• Secured Loans For Bad Credit History - Comprehensive secured loans information
• How to Improve Your Credit Score - Steps to strengthen your credit profile
• Why You Need a Bad Credit Mortgage Broker - Benefits of specialist advice