Remortgaging with bad credit

Navigating the world of remortgaging can be complex, and this complexity can be compounded when dealing with adverse or bad credit. While having bad credit may present additional challenges, it’s essential to remember that it doesn’t make the process impossible. There are options available and strategies you can use to increase your chances of a successful remortgage application.

When considering remortgaging with bad credit, a myriad of questions might arise. What lenders are willing to work with you? What effect will your credit history have on potential interest rates? How can you improve your credit score before applying? These concerns are all valid, and understanding each aspect can be the key to navigating this tricky territory.

This guide will discuss remortgaging with bad credit, delving into common queries, practical steps for enhancing your credit score, and offering insights into navigating the application process with adverse credit. By understanding this landscape better, you can make informed decisions that best align with your financial goals, and hopefully secure a remortgage deal that suits your needs.

What does it mean to remortgage with bad credit?

Remortgaging with bad credit refers to the process of refinancing your existing mortgage when you have a less than optimal credit history. This could be due to a variety of reasons, such as late payments, missed payments, defaults, bankruptcy, County Court Judgements (CCJs), or other negative financial events that have resulted in a low credit score.

In simpler terms, you’re looking to change your current mortgage, either by moving to a new lender or negotiating new terms with your existing one, but your past or present financial circumstances have negatively affected your credit history.

However, it’s important to note that remortgaging with adverse credit can be more challenging because lenders often view those with poor credit as a higher risk. This might result in stricter lending criteria, higher interest rates, or even the rejection of your application. That said, there are specialist lenders and products in the market designed to cater to those with poor credit, so it’s not an impossible task.

Can I remortgage my house with bad credit?

Yes, it is generally possible to remortgage your house even if you have bad credit, though it can be more challenging. Many traditional lenders may be hesitant due to the perceived higher risk associated with poor credit histories. However, there are lenders who specialise in dealing with borrowers who have adverse credit histories. These lenders often provide “bad credit remortgages.”

It’s worth noting that these types of mortgages may come with higher interest rates and fees due to the perceived higher risk. The specific terms and the likelihood of approval will depend on several factors, including your current credit score, the amount of equity you have in your home, your income, and your overall financial situation.

It’s usually advisable to speak with a mortgage broker or adviser who can guide you through your options and potentially connect you with lenders who are more likely to approve your application. Furthermore, it’s always a good idea to work on improving your credit score and financial stability where possible before applying for a remortgage.

What credit score do I need to remortgage my home?

In the UK, there isn’t a definitive credit score that you need to remortgage your home. This is primarily because different lenders have different criteria when considering mortgage applications. However, most lenders are more likely to accept credit scores of 720 or higher, which are generally considered good.

The three main credit reference agencies in the UK – Experian, Equifax, and TransUnion – all score differently:

Experian: Scores range from 0 to 999, with a score of 721–880 considered ‘good’, and 881 and above considered ‘excellent’.

Equifax: Scores range from 0 to 700, with a score of 420–465 considered ‘good’, and 466 and above considered ‘excellent’.

TransUnion (formerly CallCredit): Scores range from 0 to 710, with a score of 604-627 considered ‘good’, and 628 and above considered ‘excellent’.

While these scores give you an idea of your overall creditworthiness, remember that they’re not the only factor lenders consider. Your income, outgoings, and loan-to-value (LTV) ratio also play a significant role in a lender’s decision.

If your credit score is lower than these ranges, don’t lose hope. There are specialist lenders who might be willing to offer a remortgage to those with lower scores or adverse credit, but these typically come with higher interest rates to offset the perceived risk. If you’re looking to remortgage with adverse credit, it’s often helpful to speak to a mortgage broker who has experience in this area.

How does having adverse credit affect my ability to remortgage?

Adverse credit, also known as a bad credit score, can impact your ability to remortgage in several ways:

Higher Interest Rates: Lenders often consider people with bad credit scores as higher risk borrowers. As a consequence, they may charge you a higher interest rate on your remortgage to mitigate their perceived risk.

Limited Options: Not all lenders will be willing to offer a remortgage to someone with a bad credit score. Therefore, you may find your options in terms of lenders and mortgage products to be limited.

Lower Loan to Value (LTV): You may find that lenders are not willing to lend you as much in relation to the value of your property. This could mean needing a larger deposit or equity in your property in order to remortgage.

Stricter Requirements: Some lenders may impose stricter requirements on borrowers with poor credit. This could include providing more documentation about your financial status or demonstrating you have a clear plan to improve your financial situation.

Application Rejections: Each lender has different criteria for what they deem acceptable credit risk. If your credit score is significantly low, you might face application rejections, which in turn can harm your credit score even further.

However, it’s important to note that having a poor credit score doesn’t necessarily mean you can’t remortgage. Specialist lenders or brokers can help navigate this situation and may have options that suit your circumstances. It’s always wise to seek professional advice in such matters. You may also consider taking actions to improve your credit score before applying for a remortgage.

Are there lenders who specialise in adverse credit?

Yes, there are indeed lenders who specialise in offering remortgages to individuals with adverse or poor credit histories. These are often referred to as ‘subprime’ lenders or ‘non-prime’ lenders. In the UK, these may include specialist banks or building societies that cater specifically to those with lower credit scores.

However, please bear in mind that such lenders often charge higher interest rates to offset the perceived increased risk. It’s also worth noting that their product offerings may have additional conditions or restrictions compared to standard remortgage products.

As the specifics can vary and the market changes over time, it’s advisable to work with a mortgage broker who specialises in adverse credit cases. They can help you navigate the market and find the most suitable product for your circumstances.

What steps can I take to improve my chances of being approved?

Improving your chances of being approved for a remortgage with adverse credit involves taking steps aimed at boosting your credit score and presenting yourself as a reliable borrower. Here are some key steps you can take:

Improve Your Credit Score: Pay off outstanding debts, make sure all bills and credit repayments are made on time, and check your credit report for any errors or inconsistencies that might negatively impact your score.

Reduce Your Debt-to-Income Ratio: This ratio, which represents your total debt payments as a percentage of your income, is another factor lenders consider. Reducing your overall debt can help lower this ratio and make you more appealing to lenders.

Build up Savings: Having a significant amount of savings can serve as evidence of financial stability. It might also help you in increasing your deposit, which can increase your chances of approval.

Stable Employment History: A steady job and income will reassure lenders that you have a reliable source of income to repay the mortgage. If you’ve recently started a new job, it might be worth waiting until you’ve passed any probationary period before applying.

Lower Your Loan to Value (LTV): The lower your LTV, the less risk you pose to lenders. If you can, try to increase your deposit to lower your required LTV.

Consider a Guarantor: If you’re struggling to get approved, you could consider a guarantor mortgage. This means someone else – usually a close family member – agrees to be responsible for the mortgage payments if you can’t meet them.

Speak with a Specialist Broker: Some brokers specialise in finding mortgages for people with adverse credit. They can provide advice tailored to your situation and may know lenders who are more likely to approve your application.

How can I improve my credit score before applying for a remortgage?

Improving your credit score is a process that requires careful financial management and time.

Here are several steps you can take:

Check Your Credit Report: Regularly reviewing your credit report will allow you to spot and correct any mistakes that might be negatively impacting your score. You can access your credit report through UK credit reference agencies such as Experian, Equifax, or TransUnion.

Register on the Electoral Roll: If you’re not already, get yourself registered on the electoral roll at your current address. This can be a quick way to boost your credit score, as it provides proof of address and identity.

Pay Your Bills On Time: Make sure all your bills and credit repayments are paid on time, as late payments can negatively impact your credit score. Set up direct debits if possible to avoid missing payments.

Pay Down Existing Debt: Reducing your overall level of debt can improve your credit score. This includes any credit card balances, loans, and overdrafts.

Keep Credit Utilisation Low: This is the amount of credit you use compared to your total credit limit. For example, if you have a credit card with a limit of £2,000 and you’ve used £1,000 of that, your credit utilisation is 50%. Keeping this ratio below 30% is generally seen positively by lenders.

Limit Credit Applications: Each time you apply for credit, a footprint is left on your file. Too many footprints in a short space of time can indicate financial stress to potential lenders, reducing your credit score.

Maintain Old, Well-managed Accounts: Credit scoring models often consider the length of your credit history, so if you have old credit accounts that have been well managed, it’s worth keeping them open.

Avoid Associations with Others with Poor Credit: If you’ve had a joint financial product with someone who has poor credit, lenders might judge you on their score, not just yours. Wherever possible, try to keep your finances separate.

Consider Specialist Credit Builder Cards: These cards have higher interest rates but are easier to obtain when you have a low credit score. If used responsibly, making small purchases and paying off the balance in full each month can slowly improve your credit rating.

Will I face higher interest rates?

Yes, it is likely that you’ll face higher interest rates if you remortgage with bad credit. When lending money, mortgage providers assess the risk associated with the loan. If you have a history of bad credit, lenders may view you as a higher risk borrower.

To compensate for the additional risk they’re taking on, lenders typically charge higher interest rates to borrowers with poor credit histories. This means your monthly repayments might be higher, and the overall cost of the mortgage could be significantly higher over the term of the loan.

However, the actual interest rate you’re offered will also depend on several other factors, including your current income, employment status, the value of your property, the amount of equity you have in the property, and the loan-to-value (LTV) ratio of the remortgage.

It’s always a good idea to shop around and consider working with a mortgage broker who specialises in adverse credit cases. They can help you find lenders who are more likely to approve your application and may be able to secure a more favourable interest rate.

What documentation will I need to provide?

The documentation required when applying for a remortgage with bad credit is typically the same as for any mortgage or remortgage application. The lender will want to assess your income, outgoings, identity, and the property itself. Here are some key documents that you may need to provide:

Proof of Income: This can include recent payslips (usually the last three months) and the most recent P60 form from your employer. If you’re self-employed, lenders typically require two to three years’ worth of accounts or tax returns.

Bank Statements: Lenders will usually want to see the last three to six months’ worth of bank statements. They will use these to assess your spending habits and regular outgoings.
Identification: This typically includes a passport or driving licence to confirm your identity.

Proof of Address: This could be a recent utility bill, council tax bill, or bank statement showing your current address.

Current Mortgage Statement: A statement from your current mortgage lender that shows the outstanding balance and payment history.

Credit Report: Although lenders will conduct their own credit checks, having a recent copy of your credit report can be useful, especially if there are points on there that you wish to discuss or explain.

Details of Adverse Credit: If you’ve had financial difficulties in the past, it can be helpful to provide details about these issues, including steps you’ve taken to resolve them and prevent them from occurring in the future.

Proof of Deposit or Equity: If you’re increasing the size of your mortgage, you may need to provide evidence of your deposit. If you’re remortgaging for the same amount, your property’s equity takes the place of a deposit.

Remember, every lender is different, and the exact documents you need to provide can vary. It’s always a good idea to check with your lender or broker before starting the application process.

Can I consolidate my debts through a remortgage if I have bad credit?

Yes, it’s possible to consolidate debts through a remortgage even if you have bad credit, but it’s important to consider this decision very carefully.

Debt consolidation through a remortgage involves increasing the size of your mortgage to pay off other debts. This could include credit card debts, personal loans, or any other unsecured debts you might have. The aim is to simplify your payments and potentially reduce your overall monthly outgoings.

However, there are several key factors to consider:

Interest Rates: Mortgages typically have lower interest rates than other forms of borrowing, so this could reduce the overall amount you repay. However, if you have adverse credit, the interest rates offered might be higher than for those with good credit, making this consolidation less beneficial.

Secured vs Unsecured Debt: It’s important to remember that a mortgage is a secured debt, meaning it’s tied to your property. By consolidating unsecured debts into your mortgage, you’re essentially turning unsecured debt into secured debt. If you can’t keep up with repayments, your home could be at risk.

Long-Term Cost: While debt consolidation can lower your monthly payments, it often means you’ll be paying the debt off over a longer period of time. This could result in paying more interest in the long run, even if the interest rate is lower.

Lender Willingness: Not all lenders will be willing to approve a remortgage for debt consolidation, particularly if you have a history of adverse credit. You may need to work with a specialist lender or broker.

It’s highly recommended to speak with a financial advisor or mortgage broker before deciding to consolidate debts through a remortgage, particularly if you have adverse credit. They can provide advice tailored to your personal situation and help you understand all the potential implications of this decision.

How long does it typically take to get approved?

The timeline for a remortgage approval can vary significantly based on a number of factors, including the lender’s processes, the complexity of the borrower’s financial situation, and whether there are any issues with the property. On average, it can take anywhere from a few weeks to a couple of months to get approved for a remortgage.

If you have adverse credit, it could potentially take longer to get approved. This is because lenders may need to do more thorough checks and verifications to assess the level of risk associated with the loan. They might also need additional time to consider any explanations you provide for your credit history.

Working with a mortgage broker could help speed up the process. They have a good understanding of different lenders’ criteria and processes and can often help you prepare your application to ensure it goes as smoothly as possible.

Keep in mind that this is just the approval process. Once you’re approved, there’s also the conveyancing process to consider, which includes tasks like property valuations and legal checks. This can add additional time before the remortgage is fully completed.

What are the potential risks of remortgaging with bad credit?

Remortgaging with bad credit comes with several potential risks that should be carefully considered:

Higher Interest Rates: Those with poor credit are generally seen as higher risk by lenders, which often results in higher interest rates. This can increase your monthly repayments and the total amount repaid over the lifetime of the mortgage.

Higher Fees: Some lenders may charge higher fees to applicants with poor credit. These could include higher product fees or higher lender’s conveyancing fees.

Securing Additional Debt Against Your Home: If you’re remortgaging to consolidate debts, remember that you’re securing additional debt against your home. If you fail to keep up with repayments, your home may be at risk.

Longer Repayment Term: If your remortgage extends the length of your mortgage term, you could end up paying more in interest over the long run, even if your monthly payments are lower.

Potential for Further Credit Score Damage: If your application for a remortgage is rejected, this can show up on your credit report and could potentially further damage your credit score.

Limited Options: Having poor credit can limit your mortgage options. Some lenders may not approve your application, and you may have fewer mortgage products to choose from.

Given these risks, it’s important to carefully consider your decision to remortgage with bad credit. It can be helpful to seek advice from a mortgage broker or a financial adviser who can guide you through your options and help you understand the potential implications of your decision.

What are the costs?

Remortgaging comes with a number of associated costs, and having adverse credit can sometimes result in higher charges. Some of the costs you might need to consider include:

Higher Interest Rates: This isn’t a direct cost, but having bad credit often results in being offered higher interest rates on your mortgage. This can significantly increase the overall amount you repay over the mortgage term.

Arrangement Fee: This is a charge from your new lender for setting up the mortgage. For those with bad credit, this fee may be higher than for those with good credit.
Booking or Application Fee: Some lenders charge this fee upfront when you apply for the mortgage.

Valuation Fee: Your new lender will usually require a valuation of your property to ensure it offers sufficient security for the loan. This can come with a fee, though some lenders may offer free valuations as part of a remortgage deal.

Legal Fees: You’ll likely need to pay a solicitor or conveyancer to handle the legal work involved in a remortgage. This can include fees for searches, Land Registry fees, and the solicitor’s time.

Early Repayment Charge: If you’re remortgaging before your current mortgage deal ends, your current lender may charge an early repayment fee. This can be a significant cost, often a percentage of the outstanding loan, so it’s important to factor this into your decision.

Broker Fee: If you use a mortgage broker, particularly one who specialises in adverse credit cases, they may charge a fee for their services. This can sometimes be added to your mortgage, but remember that this means you’ll pay interest on it.

Keep in mind that the exact costs can vary depending on your specific situation and the lender’s terms. It’s a good idea to obtain a full breakdown of the costs before proceeding with a remortgage to ensure you can afford it and that it’s the right decision for your circumstances.

Can I remortgage with a County Court Judgment (CCJ) or bankruptcy on my credit record?

Yes, it’s possible to remortgage with a County Court Judgment (CCJ) or bankruptcy on your credit record, but it can be more challenging.

County Court Judgments (CCJs): Having a CCJ on your credit report will make you less attractive to mainstream mortgage lenders, as it signals that you’ve had difficulty managing credit in the past. However, there are specialist lenders who work with individuals with adverse credit histories, including those with CCJs. Factors such as the size of the CCJ, how long ago it was registered, and whether it has been satisfied will all be considered.

Bankruptcy: If you’ve been declared bankrupt in the past, this can significantly impact your ability to remortgage. Most mainstream lenders will not lend to individuals who have been bankrupt in the last six years. However, as with CCJs, there are specialist lenders who may consider your application once you’ve been discharged from bankruptcy for a certain period (typically at least one year).

In both cases, expect to face higher interest rates and fees, as lenders will see you as a higher risk. It’s also likely that you’ll need a larger deposit or more equity in your property.
Working with a mortgage broker who specialises in adverse credit cases can be beneficial, as they can guide you to the lenders most likely to accept your application.

Lastly, remember that improving your credit score and waiting until CCJs drop off your credit report or you’re discharged from bankruptcy can increase your chances of securing a remortgage. CCJs usually stay on your credit report for six years, as does bankruptcy, but the exact timing can vary depending on circumstances. If you’re unsure, it’s a good idea to get advice from a financial advisor.

Can I release equity if I have bad credit?

Yes, it’s possible to remortgage to release equity even if you have bad credit, but it may be more difficult and you could face higher interest rates.

Releasing equity involves borrowing more against your property than you currently owe. This means you’ll increase your mortgage balance, but you’ll receive a lump sum of money in return. You can use this money for various purposes, such as home improvements, debt consolidation, or other large expenses.

However, lenders consider a number of factors when deciding whether to approve a remortgage application, including your credit history, income, and the amount of equity you have in your property. If you have bad credit, lenders may see you as a higher-risk borrower and could charge you higher interest rates or even decline your application.

It’s also important to keep in mind that increasing your mortgage amount could result in higher monthly repayments, and it will take you longer to pay off your mortgage. This could end up costing you more in the long run, especially if you’re charged a higher interest rate due to your poor credit history.

Before deciding to remortgage to release equity, it’s a good idea to speak with a financial advisor or mortgage broker, especially one who specialises in adverse credit cases. They can help you understand your options and guide you through the process.

How often is my credit score updated, and how can I check it?

Credit scores are typically updated once a month, but the exact timing can vary depending on when your creditors report your account information to the credit bureaus. Major credit bureaus in the UK include Experian, Equifax, and TransUnion.

Here’s how you can check your credit score:

Directly with Credit Bureaus: You can check your credit report and score directly with the credit bureaus. All three bureaus offer services that allow you to view your credit report and score, sometimes for a fee. However, under UK law, you’re entitled to access your statutory credit report for free.

Experian: You can use Experian’s online services to check your credit score for free. They also offer a premium service that includes additional features, such as identity fraud monitoring.

Equifax: Equifax allows you to check your credit score and report through a service called ClearScore, which is free to use.

TransUnion: You can check your credit score and report for free using TransUnion’s Credit Karma service.

Credit Score Services: There are several online services that allow you to check your credit score for free, such as ClearScore (which uses Equifax data) and Credit Karma (which uses TransUnion data). These services also offer insights into what’s affecting your score and how you can improve it.

Banking Services: Some banks and credit card providers offer free credit score checking services to their customers. Check with your bank to see if this is something they offer.

Remember, it’s a good idea to check your credit report regularly to ensure the information is accurate and up-to-date. If you notice any errors or discrepancies, you should contact the credit bureau to have them corrected. Doing so can help ensure your credit score is an accurate reflection of your creditworthiness.

What is a credit reference agency, and how do they impact my remortgage process?

A Credit Reference Agency (CRA), also known as a credit bureau, is a company that collects and maintains individual credit information and provides it to lenders when requested, usually when an individual applies for credit. In the UK, the three main CRAs are Experian, Equifax, and TransUnion.

CRAs gather data from various sources, such as banks, credit card companies, and public records. This information is used to create a credit report, which includes details such as:

• • Personal information (name, address history, etc.)

• • Financial links to other people (e.g., joint accounts or co-signed loans)

• • Credit account history (loans, credit cards, mortgages, etc.)

• • Repayment history (including late or missed payments)

• • Public records (CCJs, bankruptcies, etc.)

• • Credit searches or enquiries

Lenders, such as mortgage providers, use this information to assess your creditworthiness, i.e., how likely you are to repay the loan. This is an important part of their decision-making process when you apply for a remortgage. They also use this information to determine the terms of your loan, including the interest rate.

If you have a history of managing your credit responsibly and making payments on time, lenders will see you as a lower risk, which can improve your chances of being approved for a remortgage and secure you more favourable terms.

On the other hand, if your credit report shows missed payments, high levels of debt, or other adverse credit events, lenders may see you as a higher risk. This could result in your remortgage application being declined, or you could be offered a mortgage but with higher interest rates or less favourable terms.

It’s a good idea to check your credit report before applying for a remortgage so you know what lenders will see when they check your credit. If there are any errors on your report, you can ask the CRA to correct them. If you have adverse credit, you might also want to work on improving your credit score before applying for a remortgage.

What happens if my application is rejected due to bad credit?

If your remortgage application is rejected due to bad credit, it’s important not to panic. There are several steps you can take:

Understand why you were rejected: Lenders are required to tell you why your application was denied. The reason could be due to bad credit, but it could also be due to insufficient income, too much debt, or other factors. Understanding the reason for the rejection can help you figure out what you need to do to improve your chances next time.

Check your credit report: If you haven’t already done so, check your credit report to confirm that all the information is accurate. Mistakes can occur, and you have the right to dispute any inaccuracies. In the UK, you can check your report with the three major credit reference agencies (Experian, Equifax, and TransUnion) for free.

Improve your credit score: If bad credit was the reason for the rejection, focus on improving your credit score. This might involve paying down debt, making sure you make all payments on time, not applying for new credit, and keeping old, well-managed accounts open.

Consider a specialist lender: If mainstream lenders aren’t willing to lend to you, you might want to consider a specialist lender. There are lenders who specialise in providing mortgages to individuals with adverse credit. However, these mortgages often come with higher interest rates and fees, so it’s important to carefully consider this option.

Seek advice from a mortgage broker: A mortgage broker, particularly one who specialises in adverse credit cases, can help guide you through the process. They can advise you on how to improve your chances of approval and help you find lenders who are more likely to accept your application.

Wait before reapplying: Each application you make can leave a mark on your credit report. Multiple applications in a short period of time can make lenders see you as a higher risk, so it’s a good idea to wait a few months before reapplying.

Remember, being rejected for a remortgage isn’t the end of the world. With some time and effort, you can improve your credit and increase your chances of approval in the future.

Are there government schemes?

There weren’t any specific UK government schemes designed to assist people wanting to remortgage with adverse credit. Most government housing schemes are aimed at first-time buyers or people who have trouble getting onto the property ladder.

However, the government does offer general advice and resources for individuals struggling with debt or adverse credit. For instance, the MoneyHelper (formerly known as Money Advice Service) provides free and impartial money advice.

If you’re having difficulties with your current mortgage payments, you might be able to receive assistance. For instance, the Support for Mortgage Interest (SMI) scheme can help people on certain benefits pay the interest on their mortgage.

Also, it’s crucial to remember that if you have adverse credit and are struggling with debt, various non-profit organisations can provide advice and potentially help negotiate with your creditors. These include StepChange Debt Charity and the National Debtline.

Always consult with a financial advisor or a mortgage broker for the most accurate and personalised advice.

Can I get a remortgage with adverse credit if I’m self-employed?

Yes, it is possible to remortgage if you’re self-employed and have adverse credit, but it may be more difficult than if you were traditionally employed or had a clean credit history.
When reviewing your remortgage application, lenders look at both your income and your credit history. Being self-employed can make proving your income more challenging, and having adverse credit can make lenders see you as a higher risk.

Here’s how these two factors can impact your remortgage application:

Self-Employment: Lenders usually require proof of income for the past two or three years when you’re self-employed. This typically includes tax returns and business accounts showing your profit. The more evidence you can provide of consistent, reliable income, the better. If your income varies significantly from year to year or has recently decreased, lenders may be cautious.

Adverse Credit: Having adverse credit can also make it more difficult to secure a remortgage. Lenders may see you as a higher risk and could charge higher interest rates or decline your application. However, there are lenders who specialise in offering mortgages to individuals with adverse credit. Your success in securing a remortgage can depend on factors such as how long ago the adverse credit event occurred and whether you’ve managed your credit responsibly since then.

Working with a mortgage broker can be particularly helpful when you’re self-employed and have adverse credit. A broker can guide you to lenders who are most likely to accept your application and provide advice tailored to your specific situation.

Additionally, improving your credit score and saving a larger deposit (if possible) can also increase your chances of being approved for a remortgage. Remember, though, each lender has their own criteria, so it’s not a one-size-fits-all situation.

Will seeking advice from a mortgage broker help my remortgage application if I have adverse credit?

Yes, seeking advice from a mortgage broker can be particularly beneficial if you’re considering remortgaging with adverse credit. Here’s why:

Knowledge of the Market: Mortgage brokers have a deep understanding of the market and can help you find lenders who are more likely to approve your application, including those who specialise in adverse credit cases.

Tailored Advice: A broker can provide advice based on your specific circumstances, helping you understand your options and guiding you through the process.

Access to More Deals: Some lenders only work through brokers, which means that a broker can give you access to deals that you might not be able to find on your own.

Saving Time and Effort: Applying for a mortgage can be a complex and time-consuming process. A broker can handle much of the paperwork and communicate with lenders on your behalf, saving you time and effort.

Rate Comparison: A broker can help you compare rates from different lenders, ensuring that you find the most competitive deal available to you.

Better Chance of Acceptance: A broker can help you understand what lenders are looking for and assist you in preparing your application, which can improve your chances of being accepted.

Remember, however, that mortgage brokers often charge a fee for their services. Some may charge a flat fee, while others may charge a percentage of the loan amount. It’s important to understand these costs before deciding to work with a broker.

Additionally, while a broker can increase your chances of being approved, they can’t guarantee acceptance. The final decision always rests with the lender.