Meta Description: Wondering if you can remortgage with bad credit? Explore UK remortgage options, including residential, buy-to-let, fixed-rate and variable-rate mortgages.

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Can I Remortgage with Bad Credit?

If you are a UK homeowner with a less-than-perfect credit history, remortgaging may feel out of reach.

You might be asking: Can I remortgage with bad credit?

The answer is that it may still be possible. Bad credit can limit your choice of lenders and affect the mortgage rates available, but it does not automatically prevent you from remortgaging.

Your options will depend on the type of credit issue, how serious it was, when it happened and whether your financial position has improved since then.

This guide explains how a bad credit remortgage works, what lenders may consider and how to prepare before submitting an application.

What Is Remortgaging?

Remortgaging means moving your existing mortgage onto a new mortgage deal.

You may remortgage with your current lender or switch to a different lender, depending on your circumstances and the products available.

Homeowners commonly consider remortgaging to:

• Secure a more suitable interest rate.
• Move from a variable rate to a fixed-rate mortgage.
• Change from a fixed rate to a variable-rate mortgage.
• Reduce their monthly mortgage payments.
• Borrow additional money against the property.
• Consolidate certain debts, where appropriate.
• Change the length of their mortgage term.
• Pay their mortgage off sooner.
• Avoid moving onto their lender’s standard variable rate.

A lender will normally assess your income, expenditure, property value, outstanding mortgage balance and credit history before offering a new mortgage.

What Counts as Bad Credit?

The term bad credit, sometimes referred to as adverse credit, can cover several different financial circumstances.

Examples may include:

• Missed or late credit card payments.
• Missed loan repayments.
• Mortgage payment arrears.
• Defaults recorded on your credit file.
• County Court Judgments, commonly known as CCJs.
• Debt management plans.
• Individual Voluntary Arrangements.
• Previous bankruptcy.
• High levels of outstanding debt.
• Frequent credit applications.
• Financial difficulties caused by unemployment or reduced income.

Not every credit problem is treated in the same way.

A missed mobile phone payment from several years ago may be viewed differently from a recent mortgage default. Lenders can also consider whether the debt has been repaid or satisfied and whether you have maintained payments since the issue occurred.

How Bad Credit Can Affect Your Remortgage Options

Lenders review your credit report to understand how you have managed borrowing in the past.

Bad credit may affect:

• The number of lenders willing to consider your application.
• The interest rates available to you.
• The amount you may be able to borrow.
• The deposit or equity requirements.
• The mortgage arrangement fees.
• Whether additional documents are required.
• The level of affordability assessment involved.

The more recent or serious the credit issue is, the more difficult it may be to access competitive mortgage products.

However, every lender has its own criteria. A rejection from one lender does not necessarily mean every lender will decline your application.

Can You Remortgage with Bad Credit?

Yes, it may be possible to remortgage with bad credit in the UK.

The outcome will usually depend on:

• The type of credit issue.
• How much money was involved.
• How recently the issue occurred.
• Whether it has been resolved or satisfied.
• Your recent payment history.
• Your current income and employment position.
• Your existing mortgage balance.
• The amount of equity in your property.
• The lender’s individual affordability and credit criteria.

Some mainstream lenders may accept applicants with minor or historic credit issues. More complex cases may need to be considered by a specialist mortgage lender that works with borrowers who have adverse credit.

Specialist deals can sometimes carry higher interest rates or fees because the lender may view the application as presenting a higher level of risk.

Bad Credit Remortgage Factors at a Glance

Factor	Why It Matters to a Lender
Type of credit issue	A late payment may be assessed differently from a CCJ, default or bankruptcy.
Date of the issue	Older credit problems may have less impact than recent ones.
Amount involved	A small satisfied debt may be treated differently from a large outstanding balance.
Current mortgage conduct	Maintaining your current mortgage payments can support your application.
Property equity	More equity may reduce the lender’s risk.
Income and employment	Stable, provable income helps the lender assess affordability.
Existing commitments	Loans, credit cards and other monthly costs can reduce borrowing capacity.
Reason for the credit problem	Some lenders may consider the circumstances behind the adverse credit.
Current financial position	An improved recent financial record may strengthen your application.

What Mortgage Types Can You Remortgage Into?

The mortgage products available will depend on your property, credit profile, income and reason for remortgaging.

Residential Remortgages

A residential mortgage is used for a property that you live in as your main home.

If you have poor credit, some high-street lenders may not accept your application. However, other lenders may consider applicants who have experienced missed payments, defaults, CCJs or other financial difficulties.

A residential bad credit remortgage may involve:

• A higher interest rate.
• A lower maximum loan-to-value.
• Additional affordability checks.
• More detailed evidence of income and expenditure.
• Restrictions based on the age or severity of the credit issue.

The exact terms will depend on the lender and your personal circumstances.

Buy-to-Let Remortgages

You may also be able to remortgage a rental property if you have bad credit.

With a buy-to-let remortgage, lenders normally assess the expected or existing rental income alongside your personal financial circumstances.

They may consider:

• The property’s rental value.
• The outstanding mortgage balance.
• The property value.
• The rental coverage calculation.
• Your experience as a landlord.
• Your personal income, where required.
• Your credit history.
• Whether you want to borrow additional funds.

Although rental income is an important part of the assessment, bad credit can still affect lender choice, mortgage rates and the amount available.

Fixed-Rate Remortgages

A fixed-rate mortgage keeps the interest rate unchanged for an agreed period.

This can provide:

• More predictable monthly payments.
• Protection from rate increases during the fixed period.
• Easier household budgeting.

However, fixed-rate products can include early repayment charges if you repay or switch the mortgage before the fixed period ends.

Your credit profile will influence which fixed-rate deals are available.

Variable-Rate Remortgages

The interest rate on a variable-rate mortgage can increase or decrease.

Variable-rate products may include:

• Tracker mortgages.
• Discount mortgages.
• Standard variable-rate mortgages.

These products can offer flexibility in some circumstances, but your monthly payments could rise if the applicable rate increases.

The suitability of a fixed or variable rate should be considered alongside your budget, future plans and ability to manage potential payment changes.

Fixed-Rate vs Variable-Rate Remortgages

Mortgage Type	Potential Benefits	Points to Consider
Fixed-rate mortgage	Monthly payments remain more predictable during the fixed period.	Early repayment charges may apply, and the initial rate may be higher depending on your credit profile.
Tracker mortgage	The rate may fall if the rate being tracked decreases.	Payments can increase if the tracked rate rises.
Discount mortgage	The initial rate may be lower than the lender’s standard variable rate.	The lender can usually change its standard variable rate.
Standard variable rate	Often offers more flexibility and may not have an early repayment charge.	The rate can be higher and may change at the lender’s discretion.

Practical Example: Remortgaging with Bad Credit

Sarah is a homeowner in Manchester.

Three years ago, she missed several credit card payments after temporarily losing her job. The missed payments affected her credit record, and she became concerned that she would not be able to secure a suitable remortgage deal.

Sarah took the following steps.

She checked her credit reports

Sarah reviewed the information held by the main credit reference agencies.

She checked that:

• Her personal information was correct.
• The missed payments had been recorded accurately.
• Repaid accounts were shown as settled or satisfied.
• There were no accounts she did not recognise.
• Her current address was correctly registered.

She improved her financial position

Sarah reduced some of her outstanding debts and avoided taking out new credit.

She also continued making her existing mortgage payments on time, helping her demonstrate that her finances had become more stable.

She contacted a mortgage adviser

Instead of making several applications herself, Sarah spoke to a mortgage adviser who understood adverse credit cases.

The adviser reviewed her circumstances and identified lenders whose criteria were more suitable for her credit history.

She applied for a remortgage

Sarah was not offered the same rate that might have been available to someone with a completely clean credit record.

However, she secured a mortgage that was more suitable than her previous arrangement and reduced her monthly mortgage costs.

This is an illustrative example only. Actual mortgage availability, rates, fees and savings will depend on individual circumstances and lender criteria.

Tips for Remortgaging When You Have Bad Credit

1. Check All Your Credit Reports

Before applying, obtain your credit reports and review the information carefully.

Different lenders may use different credit reference agencies, so checking more than one report can help you identify possible errors or outstanding issues.

Look for:

• Incorrect missed payments.
• Accounts that do not belong to you.
• Old addresses.
• Duplicate accounts.
• Debts that have been repaid but are not marked as satisfied.
• Financial links to former partners.
• Incorrect personal details.

Dispute any inaccurate information with the relevant organisation or credit reference agency.

2. Continue Paying Your Existing Mortgage on Time

Your recent mortgage payment history is important.

Even when previous credit problems remain visible on your report, maintaining your current mortgage and other financial commitments can show that your financial position has improved.

3. Be Honest About Your Credit History

Provide accurate information about missed payments, defaults, CCJs or other financial issues.

Trying to hide relevant information could delay the application or lead to the mortgage being declined when the lender completes its checks.

Clear information can also help an adviser identify lenders whose criteria are more appropriate for your circumstances.

4. Consider Specialist Mortgage Lenders

Some lenders specialise in applicants who do not meet standard high-street lending criteria.

They may consider applications involving:

• Historic missed payments.
• Satisfied defaults.
• Satisfied or unsatisfied CCJs.
• Debt management plans.
• Previous mortgage arrears.
• Bankruptcy or an IVA from several years ago.
• Other adverse credit events.

Specialist mortgages may carry higher rates or fees, so the overall cost should be considered carefully.

5. Avoid Making Multiple Applications

Submitting several mortgage applications over a short period can result in multiple hard credit searches.

These searches may affect your credit profile and could make you appear more dependent on new borrowing.

Where possible, check lender criteria and seek advice before submitting a full application.

6. Reduce Outstanding Debt Where Possible

Reducing credit card balances, overdrafts and personal loans may improve your affordability position.

Lenders assess your existing monthly commitments when deciding how much you can afford to borrow.

Do not use all your available savings to repay debt without considering:

• Emergency expenses.
• Mortgage fees.
• Legal costs.
• Valuation charges.
• Early repayment charges.
• Other costs connected with remortgaging.

7. Avoid New Credit Before Applying

Taking out a new loan, finance agreement or credit card before a remortgage application may affect affordability.

It may also cause lenders to question why you need additional borrowing.

8. Build Up More Equity

The difference between your property’s value and your outstanding mortgage is your equity.

More equity can reduce the loan-to-value ratio, which may improve the range of remortgage options available.

For example, if your home is worth £250,000 and your mortgage balance is £175,000, your loan-to-value would be approximately 70%.

A lower loan-to-value may reduce risk from the lender’s perspective, although approval is never guaranteed.

9. Prepare Your Documents

Having the correct documents ready can make the remortgage process more efficient.

You may need:

• Recent payslips.
• Bank statements.
• Proof of bonuses or commission.
• Identification documents.
• Proof of address.
• Your latest mortgage statement.
• Evidence relating to any satisfied defaults or CCJs.
• Tax calculations and tax year overviews if you are self-employed.
• Business accounts, where required.
• Evidence of rental income for a buy-to-let property.

Requirements vary between lenders.

10. Consider the Total Cost, Not Only the Interest Rate

A lower mortgage rate does not always mean the mortgage is cheaper overall.

Compare:

• The interest rate.
• Monthly repayments.
• Arrangement fees.
• Valuation fees.
• Legal fees.
• Broker fees.
• Early repayment charges.
• The mortgage term.
• The total amount repayable.

A product with a slightly higher rate but lower fees could sometimes be more cost-effective, depending on the mortgage amount and how long you intend to keep the deal.

Can You Remortgage After a CCJ?

It may be possible to remortgage after receiving a County Court Judgment.

A lender may assess:

• The value of the CCJ.
• When it was registered.
• Whether it has been satisfied.
• The reason it occurred.
• Whether there are multiple CCJs.
• Your financial conduct since the judgment.
• The amount of equity in your home.

A recent or large CCJ may reduce your options, while an older, satisfied CCJ may be accepted by a wider range of lenders.

Can You Remortgage with a Default?

A default does not automatically prevent you from remortgaging.

However, lenders may want to know:

• When the default was registered.
• The original amount.
• Whether it has been repaid.
• The type of account involved.
• Whether you have any other adverse credit.
• Whether your recent payments have been maintained.

Specialist mortgage lenders may consider defaults that fall outside mainstream lender criteria.

Can You Remortgage with Mortgage Arrears?

Current or recent mortgage arrears can make remortgaging more difficult because they relate directly to your ability to maintain housing payments.

Some lenders may still consider an application depending on:

• How many payments were missed.
• When the arrears occurred.
• Whether the account is now up to date.
• The reason for the missed payments.
• Your current financial position.
• Your property equity.

You should seek professional advice before applying, particularly if you are currently struggling to maintain your mortgage payments.

Can You Borrow More When Remortgaging with Bad Credit?

It may be possible to borrow additional money when remortgaging, but the lender will assess the purpose of the borrowing and whether the increased mortgage is affordable.

Additional borrowing may be considered for purposes such as:

• Home improvements.
• Buying out another owner.
• Certain major expenses.
• Raising capital for a buy-to-let property.
• Debt consolidation, where appropriate.

Using a mortgage to consolidate unsecured debt can reduce monthly payments in some situations, but it may also mean repaying the debt over a much longer period.

This could increase the total interest paid and would secure previously unsecured debt against your home.

When Should You Seek Expert Advice?

Remortgaging with bad credit can involve more complex lender criteria than a standard remortgage.

A mortgage adviser may help you:

• Understand how lenders could view your credit history.
• Identify lenders suitable for your circumstances.
• Compare residential and buy-to-let remortgage options.
• Understand fixed-rate and variable-rate products.
• Assess the overall cost of different mortgages.
• Avoid unnecessary mortgage applications.
• Prepare the documents required by the lender.
• Understand potential fees and early repayment charges.

Mortgage availability will still depend on lender criteria, affordability assessments and your individual circumstances.

What Should You Watch Out For?

Before agreeing to a bad credit remortgage, review the complete terms carefully.

Important points include:

• Higher interest rates: Adverse credit products may have higher rates than standard mortgage deals.
• Arrangement fees: Some specialist products may include larger product or arrangement fees.
• Early repayment charges: Leaving your existing deal early could create an additional cost.
• Broker fees: Ask for a clear explanation of any fees before proceeding.
• Affordability checks: A lender must still assess whether the mortgage repayments are affordable.
• Longer mortgage terms: Extending the term may reduce monthly payments but increase the total amount of interest paid.
• Additional borrowing: Borrowing more against your property increases the amount secured on your home.
• Unexplained upfront charges: Make sure you understand what any payment covers and whether it is refundable.

Always check that the mortgage adviser or lender is appropriately authorised or regulated before sharing personal information or paying a fee.

Frequently Asked Questions

Does bad credit automatically stop me from remortgaging?

No. The decision will depend on the severity and age of the credit issue, your current financial circumstances, your property equity and the lender’s criteria.

How long should I wait before remortgaging after a default?

There is no single waiting period that applies to every lender. Some may consider recent defaults, while others require them to be older or satisfied.

Will checking my credit report damage my credit score?

Checking your own credit report normally creates a soft search and should not affect your score. A full mortgage application may create a hard search.

Can I stay with my current lender?

You may be able to switch products with your existing lender through a product transfer. The process and eligibility requirements can be different from moving to a new lender.

Will I need a larger deposit to remortgage with bad credit?

As an existing homeowner, lenders normally consider the equity in your property rather than a new cash deposit. More equity may provide access to a wider range of products.

Can I remortgage if I am self-employed and have bad credit?

It may be possible. You will generally need to provide evidence of your income, such as tax calculations, tax year overviews or business accounts, depending on the lender.

Final Thoughts

Remortgaging with bad credit in the UK is not necessarily impossible, but it requires careful preparation and realistic expectations.

Your options will depend on:

• The type and age of your credit issues.
• Whether outstanding debts have been resolved.
• Your recent payment history.
• Your income and affordability.
• The equity available in your property.
• The mortgage lender’s criteria.

Whether you are considering a residential remortgage, a buy-to-let remortgage, a fixed-rate mortgage or a variable-rate deal, it is important to understand the total cost before making a decision.

Avoid making several applications without checking whether you are likely to meet the lender’s requirements.

Speak to BSL Financials About Your Remortgage Options

If you are thinking about remortgaging but are concerned about missed payments, defaults, CCJs or another credit issue, BSL Financials can help you understand the options that may be available.

Our team can review your circumstances, explain the process in plain English and help you explore suitable mortgage lenders without making unrealistic promises.

Contact BSL Financials today to discuss your remortgage options, even if your credit history is not perfect.

This article is for general information only and does not constitute personalised financial advice. Mortgage availability is subject to individual circumstances, affordability assessments and lender criteria. Your home may be repossessed if you do not keep up repayments on your mortgage.