Can you remortgage with bad credit?
Yes. Several specialist lenders offer remortgage products to borrowers with adverse credit. Your options depend on the type and severity of your credit issues, how much equity you have in your property, and your current income.
In some cases, a product transfer with your existing lender may be easier than a full remortgage, because your lender already knows your payment history with them and may not run a full credit check.
Why do people with bad credit need to remortgage?
The most common reason is being stuck on an expensive SVR after a fixed deal ends. If you have bad credit, your lender may not offer you a competitive product transfer, leaving you paying hundreds more per month than necessary.
Escape the SVR
- SVRs are typically 7–8.5% — far higher than fixed rates
- Even a bad credit fixed rate may be cheaper than your current SVR
- Locking in a rate gives you payment certainty
Consolidate debts
- Roll high-interest debts into a lower mortgage rate
- One manageable monthly payment instead of several
- Be aware: you’re securing debts against your home
Rebuild your position
- A bad credit remortgage is often a stepping stone
- Maintain clean payments for 2–3 years
- Then remortgage again to a mainstream rate
What do lenders look at when you remortgage with bad credit?
Specialist lenders assess your application across several factors, not just your credit score. Understanding what they look for can help you prepare.
Recency of credit issues
- Issues older than 2–3 years are viewed much more favourably
- Recent problems (last 12 months) significantly limit options
- The trend matters — improving credit history is a positive signal
Severity and amount
- A £200 default is treated very differently from a £20,000 CCJ
- Multiple small issues can be as problematic as one large one
- Satisfied debts are always better than unsatisfied ones
Your equity position
- More equity means lower LTV and lower risk for the lender
- Borrowers with 25%+ equity have significantly more options
- If your property has risen in value, your LTV may have improved naturally
Payment history on your current mortgage
- A clean mortgage payment record counts heavily in your favour
- Lenders distinguish between a few missed credit card payments and missed mortgage payments
- Two years of clean mortgage payments opens many more doors
Product transfer vs remortgage with bad credit
If your credit issues occurred after you took out your current mortgage, a product transfer might be the easier path.
| Product transfer | Full remortgage |
|---|---|
| Your lender already knows your mortgage payment history | Access to the whole market including specialist lenders |
| Often no full credit check or affordability assessment | May find a better rate than your current lender offers |
| No legal costs or valuation fees | Full credit check and affordability assessment required |
| Quicker and simpler process | Legal work and valuation needed |
Ask your broker to check your current lender’s product transfer rates first. If they’re competitive, the simplicity and lower risk of staying put may outweigh a slightly cheaper rate elsewhere.
How to improve your chances of being accepted
While you can’t erase your credit history overnight, there are steps you can take to strengthen your application before applying.
- 01
Check your credit reports for errors
Get reports from all three agencies (Experian, Equifax, TransUnion). Dispute any inaccurate information — wrong addresses, accounts that aren’t yours, or debts marked as unsatisfied when they’ve been paid.
- 02
Satisfy any outstanding debts
If you have unsatisfied defaults or CCJs, paying them off before applying will improve your options. Some lenders won’t consider you at all with unsatisfied debts.
- 03
Maintain clean payments for as long as possible
Every month of clean credit card, loan, and mortgage payments strengthens your profile. Lenders want to see that past issues are behind you.
- 04
Build up your deposit or equity
If you’re overpaying your mortgage, your LTV is improving. A lower LTV opens more doors and better rates.
- 05
Use a specialist broker
A broker who understands adverse credit will only submit your application to lenders likely to accept you, protecting your credit file from unnecessary searches.
Get expert help with your bad credit remortgage
At Clearview Mortgage Solutions, we help borrowers with all types of credit issues find the right remortgage deal. We’ll compare your current lender’s product transfer with specialist remortgage options across the market and recommend the best path forward.
Contact us for a free, no-obligation review of your situation.