Yes, it may be possible to remortgage with bad credit. The options depend on what happened, how recently it happened, your current finances and the lender's criteria—not simply the score shown in a credit app.
An older, isolated missed payment can be assessed differently from recent mortgage arrears or ongoing financial difficulties. Some lenders consider applicants with adverse credit, but acceptance, competitive rates and additional borrowing are not guaranteed.
This guide focuses on remortgaging your own home. Before making an application, it is worth comparing what a new lender could offer with any suitable deal available from your current lender.
What counts as bad credit when remortgaging?
Bad credit is a broad description rather than a single mortgage category. Lenders may use the term adverse credit for a history that includes missed payments, defaults, court judgments or insolvency.
Limited credit history is different from a record of unpaid debts, even if both result in a lower consumer credit score. Equally, having a loan or credit card does not automatically mean you have bad credit: the repayment record and ongoing commitment matter.
What credit score do you need to remortgage?
There is no universal minimum score accepted by every mortgage lender. Credit reference agencies use different scoring systems, and lenders apply their own rules to credit data and the rest of your application.
A high score does not guarantee approval, and a low score alone does not tell you which lenders might consider your circumstances. The detailed report is more useful than a screenshot of the score.
What do lenders look at on your credit history?
The type, age, amount and pattern of any problems can all matter. The following are examples of information a lender may assess, not acceptance rules that apply across the market.
| Credit history | What may matter |
|---|---|
| Late or missed payments | Which account was affected, how recently it happened, whether it was repeated and whether payments are now up to date. |
| Defaults | When each default was registered, the amount, the type of account and whether the balance has been settled. |
| County Court Judgments (CCJs) | The registration date, amount, number of judgments and whether they have been satisfied. |
| Debt management plans | Whether the plan is active or completed, its payment history and the criteria of the particular lender. |
| An IVA or bankruptcy | Whether the arrangement or bankruptcy is ongoing, when it was completed or discharged, and any continuing restrictions. |
Paying a debt does not necessarily remove an accurate historical entry from your credit file immediately. Keep evidence of settlement and check that the account status is recorded correctly.
Credit history is only part of the decision. Income, spending, existing debts, the mortgage term and the property also affect eligibility. For a joint application, the lender considers both applicants; one person's strong credit history does not automatically cancel out the other's difficulties.
Could you stay with your current lender?
Possibly. Moving to another deal with your existing lender is usually called a product transfer. A straightforward rate switch, without additional borrowing or other changes, may not require a fresh affordability assessment.
It is worth checking this option if your credit history has changed since you took out the mortgage. However, access depends on your lender's rules, your account status and the deals it offers. Do not assume a transfer is guaranteed or that every lender follows the same process.
Borrowing more or making other changes can involve additional checks. A new lender may also be able to use a modified affordability assessment for an eligible switch, but this is not a way around its credit criteria or a guarantee of acceptance.
See product transfer vs remortgage for a fuller comparison of staying and switching.
How do equity, interest rates and fees affect your options?
More equity means a lower loan-to-value ratio for the same borrowing. That can widen the products available, but it does not override credit or affordability requirements. There is no single minimum equity percentage for every bad-credit remortgage.
For example, a £180,000 mortgage against a property valued by the lender at £240,000 is 75% loan-to-value. This illustrates the calculation only; it does not indicate acceptance or an available rate.
If adverse credit limits your choices, the available interest rates may be higher. Compare product fees, legal and valuation costs, any early repayment charge on your existing deal and the balance remaining at the end of the comparison period.
Compare on a consistent basis. Extending the mortgage term can reduce the monthly payment while increasing the total interest paid. A lower payment alone does not prove that switching saves money.
Read the remortgage costs guide and guide to remortgage valuations for more detail.
How can you prepare for a remortgage with bad credit?
- Check your full credit reports. Free statutory reports are available from credit reference agencies, including Experian, Equifax, TransUnion and Crediva. Reports may differ. Checking your own report does not damage your credit score.
- Raise genuine errors. Contact the agency and relevant creditor about incorrect balances, payment records or accounts. Keep evidence of corrections and settlements.
- Keep payments up to date where you can. Review your budget and contact creditors promptly if a payment is becoming unaffordable.
- Avoid unnecessary credit applications. Several hard searches in a short period can make obtaining credit harder. Ask what type of search will be used before proceeding.
- Prepare the facts. Gather income evidence, recent bank statements, your mortgage statement, debt balances and relevant credit-history documents. Explain what happened and what has changed.
- Check your current deal. Note its end date, remaining mortgage term and any early repayment charge so that suitable options can be compared in good time.
A period of stable finances may improve your position, but there is no fixed waiting period that guarantees a better mortgage. Weigh any potential benefit of waiting against the cost of your current or follow-on rate. See When should I remortgage?
Be cautious of anyone promising guaranteed approval or removal of accurate negative credit information. You do not need to buy a credit-repair service simply to access your statutory reports.
What if a remortgage application has already been declined?
One lender's decision does not mean every lender will decline you. However, submitting repeated applications without understanding the problem can create unnecessary searches and expense.
Ask what information the lender can provide about its decision. Review the credit reports and establish whether the issue was credit history, affordability, the property or another criterion. A different application should have a clear reason to fit the new lender's requirements.
An agreement in principle is not a mortgage offer. Full underwriting, document checks and the property assessment can still change the outcome.
What if you are behind on your mortgage payments?
Recent or ongoing mortgage arrears can make switching lenders particularly difficult. If you have missed a payment or think you may struggle with the next one, contact your current lender promptly rather than relying on a new mortgage to solve the problem.
Simply discussing support with your lender does not affect your credit file. An arrangement you agree may be reported, so ask about its effect on your credit record, future payments and the total amount repayable.
Free, independent debt advice is available through organisations such as StepChange and National Debtline. Keep making agreed payments where you can, and do not stop them in the hope that it will improve your remortgage options.
Can you remortgage with bad credit and borrow more?
Some lenders may consider additional borrowing, but they will assess the purpose, the larger loan and whether it is affordable. Being eligible for a simple rate switch does not mean you are eligible to release extra money.
If the money would repay credit cards or personal loans, remember that you would be securing previously unsecured debts against your home. A lower rate or monthly payment can still mean paying more overall when repayment is spread over a longer term.
Debt consolidation does not erase accurate historical credit entries. Compare alternatives and seek debt advice if you are struggling; new secured borrowing is not automatically the suitable answer.
Think carefully before securing other debts against your home.
Get help with your remortgage
I can review your mortgage, credit history and current finances, check relevant lender criteria and compare suitable options, including any available product transfer. If a new application is not appropriate now, I can explain why and what may need to change before reviewing it again.
I do not charge a mortgage broker fee. If I arrange your mortgage, I receive commission from the lender on completion. Lender fees, legal costs, valuation fees and early repayment charges may still apply. I cannot guarantee a mortgage offer or a particular rate.
Book an initial call or learn more about my remortgage advice.
This guide provides general information, not a personal mortgage recommendation, legal advice or debt advice. Lender criteria and available products can change.
Your home may be repossessed if you do not keep up repayments on your mortgage.