Getting a mortgage is difficult with arrears, defaults, CCJ's, debt management, IVAs or bankruptcy on your record - but not impossible! Quick, easy and free; we help where others can't.
If you’re struggling to find a new remortgage deal, let us help. We offer a whole of market review to find deals suitable to your personal and financial circumstances. Our experienced and qualified network can help make sure you never pay more than you need to for your mortgage.
Bad credit remortgage loans are not as freely available as they have been in the past, but things have started to improve. Each lender is different and just because you may have been declined by one, it doesn’t mean you won’t be accepted by another. There are various remortgage lenders for applicants with bad credit history, and as the industry evolves and wider economy develops, the number of poor credit remortgage lenders continues to increase.
Speak to one of our advisors to discuss adverse credit remortgages. We have arranged remortgages for people with poor credit in the following circumstances:
• Low credit score
• Previous late payments
• Previous arrears
• Debt management schemes
• Payday loans
• Multiple credit problems
Remortgaging is a critical exercise to ensure you have the very best available deal. It is estimated that approximately 1.2 million mortgage holders are no longer on fixed term deals so re-payments are being made on a variable basis. This means that re-payments are likely to be larger than those historically and due to the market movements the cost is only expected to increase. Therefore reviewing your remortgage deal will most likely result in you lowering your re-payments and provide you with options to fix this payment over 2 to 5 years on average.
Remortgaging also allows you the option to raise additional capital to settle consolidation or complete home improvements where you’re personal circumstances allow.
Sometimes there isn’t a remortgage lender who can do what you need when you are looking to raise further finance, perhaps to consolidate debts or for home improvements, but don’t give up hope. Second charge loans, also known as secured loans, may offer the solution you need.
It may be possible and more appropriate for people with adverse credit to look at the option of a second charge loan. These loans can be more flexible in certain situations, therefore some lenders may be willing to lend on a second charge basis when a first charge mortgage is not possible.
Remortgaging with adverse credit can be far simpler than for a purchase, namely because you have 2 options: either a full remortgage of your debt, or taking a secured loan/second charge mortgage, which can be even more flexible. Often if you are declined for a main mortgage but need to raise capital for consolidating debt, home improvements, or any other legal purpose, there may well be a second charge mortgage lender offering a secured bad credit loan who’ll accept you when a first charge mortgage is not possible.
There are, lenders who accept a range of credit issues that often stem far past what most borrowers believe to be possible, this includes defaults and arrears. Once the initial application is submitted, the underwriter will still need to sign off your application with a full assessment of your documentation and reasons for the credit issues, to establish if you’re likely to be at risk of defaulting in future. For this reason, it’s important to not view an Agreement in Principle as a guarantee, and to wait until the mortgage has been underwritten and signed off in full. The best way to get guaranteed approval with a bad credit mortgage lender is to have the specialist review your credit files and match you with the best lender who’ll carefully consider the issues on your record.
Contrary to popular belief, it is sometimes possible for high street mortgage lenders to accept bad credit applications, but only in the right circumstances when applied for in the right way. Many high street lenders will never accept your application if issues are severe enough (such as bankruptcy / repossession), however, if such issues are historical enough, some can be more flexible. Typically, any issues will need to have fallen off your credit file to fit with these lenders, but it is sometimes possible for a specialist to present the back-story and justification of issues to a lender in the right way, so if they have an appetite to lend they may consider going outside their usual policy by exception. This is far more likely if your case is strong in all other areas, for example you aren’t borrowing a large amount compared to your income, and you have a large deposit.
A remortgage is the process that allows you to pay off your existing mortgage using the same property as security. Re-mortgaging is critical as by swapping you would aim to achieve lower interest rates and better terms such as fixed term deals so your re-payments will not increase.
Each remortgage is different however on average they should complete with 5 to 8 weeks. Providing required information when requested can go a long way to ensure completion is completed as quick as possible.
The best lenders for bad credit remortgages depends on your situation. Each lender specialises in different issues, so a customer with defaults would be best placed with a completely different range of lenders to a borrower with a debt management plan for example. The best bad credit remortgage lender also varies for different income types and loans to values. Lenders are constantly changing their policies and procedures, therefore, it's important to use experienced and qualifies whole of market advisers.
To speak to a friendly We Plan Group adviser to answer any questions you might have about any of our services.
Remortgages are offered by We Plan Financials Limited, registered in Wales Number 1357915. Registered office Tintern House, William Brown Close, Llantarnam Business Park, Cwmbran, NP44 3AD. We Plan Financials Limited is an Introducer Appointed Representative of Dragon Brokers Limited and is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 843105. You can check this on the FCA Register at https://register.fca.org.uk/