Remortgage With Adverse Credit 

Can I remortgage with Adverse Credit? 

Adverse credit is another name for a bad credit score or a bad credit file, there are still options for you if you have adverse credit, but they will be more limited. It can be worth approaching specialist lenders who deal with clients with adverse credit every day and can offer more advice and understanding of your situation.

It is a good idea to try and get your finances in order as much as you can before applying for a remortgage but there will still be options out there for you. It can be worth approaching a Mortgage Broker to navigate through the mortgage market to lenders who are more likely to accept you for a mortgage.

Remortgaging can be a good way to build your credit back up, you can even consolidate your debt into your mortgage repayments to show the lender you are reliable at borrowing and are still paying back the debts you owe. 

How can I Improve my chances of my Remortgage Application being approved?

There are several things that you can do to try and improve your chances of an application being approved. For example, you can wait for the right time, sometimes when you have marks on your credit record, and they are recent they will be considered yet if they were a year ago, they are more likely to be overlooked; this obviously depends on what type of mark or debt it is.

You need to think about how you are financing the property, if it is with someone else their credit is going to be considered too. If you and whomever you are investing in property with both have adverse credit, then it is going to be harder to find a lender willing to accept you both onto a joint remortgage.

Try your best to do all you can to repair your poor credit history and improve your credit score. There are sites such as Experian and Clear Score where you can access your credit file and see what your score is. Paying off debts regularly or using a debt management plan can help to show lenders you are paying debts back just ensure you stick to payment plans that are going to aid you in boosting your score.

Make sure you are applying when you have a stable and regular income, if you already have adverse credit then you are going to want to make sure every other area of your application is as perfect as it can be.

You need to make sure that you are open and honest with your lenders, although it may seem daunting to approach a lender and speak of your bad credit, they will see this as wanting to be more responsible. Lenders do not want to give out mortgages to people who cannot afford the mortgage repayments which is why their checks are so thorough. It is important to be as transparent as you can and to have open communication with your lender.

It can be worth saving up for a bigger deposit to present to your lender too, this is to show how invested you are in purchasing property and you have money to spare or have saved more towards a deposit.   

Will I pay more for a mortgage if I have Adverse Credit? 

It is hard to say whether you are going to pay more or less as every mortgage is different but typically you are going to be paying slightly higher than average due to your adverse credit. Lenders may charge you higher interest rates as you are deemed more of a risk to lend to.

This will vary from lender to lender as every criteria is different but there are still going to be options out there for you. It can be worth approaching a Mortgage Broker who can give expert advice tailored to your specific situation. Lenders want to know that you can afford the repayments on your mortgage despite your credit report.

How can a Mortgage Broker at Spot On Mortgages help me?

Here at Spot On Mortgages we keep our eye on the ever-changing mortgage market, we know how daunting it can be approaching the market already knowing you have adverse credit too. We will listen to your circumstances and tailor our advice to you by picking the lenders who are going to be right for your situation.

We are authorised and regulated by the Financial Conduct Authority meaning we can give the advice you seek in regards to mortgage or remortgages and mortgage deals. There are a range of mortgage lenders and mortgage payments out there, it is about finding the one that fits for you.

We will be able to help with your mortgage application as well as advising you on things you can do to improve your chances of being accepted by a lender. Speak to a Mortgage Broker at Spot On Mortgages and let our team of experts help find you a mortgage deal today.

Spot On Mortgages Ltd are an Appointed Representative of TenetLime Limited, which is authorised and regulated by the Financial Conduct Authority. We are registered in England and our registered office is in Portishead, Somerset. 

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home.