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Bad Credit Mortgages

Mortgage Options For People With Bad Credit

Think bad credit means you can’t get a mortgage? Think again. With the right financial advice, you can explore more flexible mortgage options and get your credit score back on track.

Understanding your mortgage options can be difficult, especially when you have bad credit. By reading our expert guides, we hope that you can feel more confident about your options and reach out to the specialist mortgage professionals to get the ball rolling.

Posted On: December 15, 2022
Updated On: January 16, 2023

How To Remortgage With Bad Credit

If you’re looking to remortgage but your finances have fallen into a less favourable position, you may wonder how you can increase your chances of securing a new loan.

It can be more difficult to get a mortgage with adverse credit, but it’s not impossible. Criteria will vary from lender to lender. Some financial issues will be more of a red flag than others. It’s all about how much of a risk you appear to lenders.

So, if you have a poor credit score, perhaps as a result of a CCJ, mortgage arrears or a debt management plan, we’re taking a look at how you can boost your chances of getting a remortgage.

How can you increase your chances of getting a remortgage with adverse credit?

If you haven’t already, the first thing to do should be to review your credit report more closely. Pinpoint all the areas that are flagged as an issue, such as missed payments or a CCJ. Having this information to hand will be helpful to bring up in any subsequent meetings with a financial or mortgage advisor. Once you know the areas you need to improve, your advisor can share your available options and create an action plan to get you back on track.

  • Speak to a Whole of Market remortgage specialist

A bad credit expert can help you navigate the market and match you to a lender that will be more likely to offer a loan. Your offers may be more limited, but with a Whole of Market broker, you should have more options available to you.

  • Review your finances

Cutting down on inessential expenses, seeing where you could make extra savings or even where you could make extra money are all good ways to review your finances. You may need the help of a financial expert to get the best advice for your circumstances. It’s best not to take any chances with your money if you’re experiencing adverse credit.

  • Prepare for a bigger deposit and/or interest rate payments

Bad credit mortgages can include a larger deposit (20-30%) and higher interest rates. Making sure you can pay these higher amounts could be crucial. Lowering your loan-to-value ratio will increase your chances of getting a mortgage approved. This is because you will have paid more of the property value upfront, meaning you’re less of a risk to lenders.

  • Seek help from family

Not everyone will be in a situation where they can turn to family for financial support. However, if you can, it’s an option to consider. They might be able to help you save for a larger deposit.

  • Seek a guarantor

A guarantor can be an extra layer of protection, making you appear less of a risk for lenders. Your guarantor could be a family member. It’s important you both understand the risks and implications. For instance, if you don’t keep up on your repayments, your guarantor will be expected to pay on your behalf.

  • Need help with debt?

If you have significant debt, there are organisations that can provide the advice you need to help reduce or clear your arrears. This should be your priority. You can also remortgage to consolidate your debts to make them more manageable. To find out if this is a suitable option for you, book a consultation with our bad credit experts.

You can be turned down due to a poor credit rating. However, taking all the possible steps as listed above can significantly boost your chances of getting a mortgage. Speak to our adverse credit remortgage experts today to see how we can help.

*You may have to pay an early repayment charge to your existing lender if you remortgage.