Advice for existing UK homeowners
Remortgage with bad credit
A difficult credit history can restrict your choices, but it does not automatically mean you must stay on your current rate. Compare the available routes before deciding whether to switch, borrow more or wait.
Count Ready can assess your circumstances. Any mortgage offer depends on the lender’s criteria, affordability checks and property assessment.
By Count Ready · Updated
Can you remortgage with bad credit?
It may be possible. The answer depends on the credit issue, recent mortgage conduct, income, commitments and the amount you want to borrow against your home. Start by separating a simple deal change from a request for extra money.
Change deals with your current lender
A product transfer means choosing another deal with the same lender. If payments are up to date and you are not borrowing more, the FCA says a switch may be available without a fresh affordability check, subject to exceptions.
Ask what applies to your account and whether other checks are needed. Do not assume every change is check-free.
Move the mortgage to a new lender
A new lender assesses the proposed borrowing, credit history, affordability and property. A lower advertised rate is useful only if you meet the criteria and the overall costs make the move worthwhile.
Ask your adviser to compare a suitable new-lender option with what your existing lender can offer.
Request additional borrowing
Raising money for home improvements or another purpose increases the borrowing request. Explain the amount and intended use at the outset: a simple rate-switch offer does not establish that extra funds will be approved.
Review the timing before switching
Your current deal, exit charges and expected changes in your finances can affect the decision. If waiting is considered, identify the cost in the meantime and set a review point. Do not rely on a future rate or approval.
Source: FCA guidance on switching and affordability (opens in a new tab)
What will an adviser need to understand about your credit?
There is no single consumer credit score that guarantees a remortgage. The entries behind the score matter, including what happened, when it happened and whether the account is now settled or up to date.
- Late payments: the account involved, frequency and recent payment conduct.
- Defaults and CCJs: dates, amounts, settlement status and any linked records.
- Debt arrangements or insolvency: the type, current status and relevant completion or discharge evidence.
- Mortgage arrears: the lender’s statements, outstanding shortfall and details of any arrangement.
Our defaults (opens in a new tab), CCJ (opens in a new tab) and late-payment (opens in a new tab) guides explain those records in more detail.
How much equity do you need?
The required equity varies with the lender, credit history and borrowing purpose. There is no minimum percentage that makes every bad-credit application acceptable.
Loan-to-value (LTV) compares the proposed mortgage with the property value accepted by the lender. Include any additional borrowing and fees added to the loan when discussing the required amount.
For example, a £180,000 mortgage against a £240,000 home is 75% LTV. Increasing the mortgage to £192,000 makes it 80% LTV at the same valuation.
These are illustrative calculations, not available products or lending limits. A different valuation changes the result.
Compare the cost of the whole move
Ask for a comparison covering the same borrowing amount and period. If the term changes, make that clear: a reduced monthly instalment can hide a longer repayment commitment.
- The rate and repayments during the new deal, plus what happens when it ends.
- Any early repayment charge and mortgage exit fee on the current loan.
- Product, valuation, legal and adviser fees, including which are payable upfront.
- Interest on fees added to the mortgage, where that option is available.
- The total amount repayable and any restrictions on overpayments.
Rates and fees depend on the actual offer. We do not use a generic bad-credit rate as a quote for your circumstances.
Remortgage fees and costs (opens in a new tab) · MoneyHelper: comparing remortgage deals (opens in a new tab)
Prepare for a useful remortgage discussion
Start with the information you have. An adviser can explain what further evidence is needed rather than asking you to guess a lender’s document requirements.
- Your current mortgage: balance, repayment type, remaining term, deal-end date and any exit charge.
- Your objective: a rate change, extra borrowing or another planned change, with the amount involved.
- Your property: an estimated value and any known lease, ownership or construction issues.
- Your finances: income, household commitments and relevant credit reports for each applicant.
- Your credit explanation: dates, amounts and evidence of settlement, repayment arrangements or corrections.
Questions about remortgaging with bad credit
Can I remortgage if my credit has worsened since I bought my home?
Possibly, but the available routes need a fresh assessment. Ask about your existing lender’s deal options as well as moving elsewhere. Give the adviser the new credit information and current mortgage statement; the original mortgage approval does not establish eligibility for a new application.
Do I need a cash deposit to remortgage?
For a straightforward remortgage, the equity already in your property normally takes the place of a purchase deposit. You may still need cash for fees or to reduce the borrowing. The lender’s valuation, proposed loan and credit criteria determine whether the equity is sufficient.
Can I change deals if I have a recent default or CCJ?
A recent default or CCJ needs specific assessment, including its date, amount, current status and the wider account history. Switching deals with an existing lender and applying to a new lender are different routes. Neither a settled record nor additional equity guarantees acceptance.
What if only one joint applicant has bad credit?
A joint remortgage normally involves assessing both applicants. Explain the credit issue alongside the household income and commitments. Removing someone from the mortgage is a separate change involving lender consent and potentially legal work; it is not a simple way to bypass an assessment.
Does being self-employed rule out a bad-credit remortgage?
No, but both income evidence and credit history need to meet the lender’s requirements. Prepare accounts or tax documents, bank statements and an explanation of changes in earnings. The evidence period and treatment of income differ between lenders, so do not assume one fixed number of trading years applies everywhere.
Should I wait until my credit score improves?
Compare the likely cost of waiting with the options available now. Include the rate after your current deal ends, any early repayment charge and what is expected to change in the credit record. A higher displayed score does not guarantee a cheaper mortgage, and a future offer cannot be promised.
Understand your remortgage options
Tell us when your current deal ends, whether you need extra borrowing and the credit issue you would like assessed. We can discuss the next steps without promising an outcome before the facts are reviewed.
The initial consultation is free. Obtain the service scope and full fee details in writing before agreeing to chargeable work.
Terms of Business (opens in a new tab) · Privacy Policy (opens in a new tab)
Your home may be repossessed if you do not keep up repayments on your mortgage.