How to Remortgage with Bad Credit in the UK: Your Complete 2025 Guide
Date: 27/05/2025
How to Remortgage with Bad Credit in the UK: Your Complete 2025 Guide
Remortgaging your home can be a great way to save money, consolidate debt, or release equity — but what if you have bad credit? The good news is that even with a poor credit history, remortgaging in the UK is still possible. This guide explains how you can improve your chances, what lenders look for, and the steps to take to secure the best remortgage deal, even with a low credit score.
What Does It Mean to Remortgage with Bad Credit?
Remortgaging means switching your existing mortgage to a new lender or deal, typically to get better interest rates or terms. If you have bad credit — such as missed payments, defaults, CCJs, or even bankruptcy — lenders may view you as a higher-risk borrower.
However, many specialist lenders and mortgage brokers understand that life happens. With the right approach and preparation, you can still get approved.
Can You Remortgage with Bad Credit?
Yes, you can. Although the choice of lenders and deals may be more limited, several options are available for those with:
- CCJs (County Court Judgments)
- Mortgage arrears
- Late payments
- Defaults on credit cards or loans
- Low credit scores
Specialist lenders focus on your current financial circumstances, not just your credit history.
Step-by-Step Guide to Remortgaging with Bad Credit
1. Check Your Credit Score
Start by getting a copy of your credit report. This gives you a clear picture of your financial history and helps you identify any inaccuracies that could be affecting your score.
Popular credit reference agencies include Experian, Equifax, and TransUnion.
2. Understand Your Credit Issues
Review any red flags:
- Missed or late payments
- Outstanding debts
- High credit usage
- Previous bankruptcies or IVAs
Understanding these factors helps you explain them to potential lenders.
3. Speak to a Mortgage Advisor
Using a mortgage broker who specialises in bad credit remortgages can significantly improve your chances. They have access to specialist lenders not available on the high street.
An advisor will:
- Assess your current mortgage and credit position
- Recommend suitable remortgage deals
- Help you prepare your application
You can contact us directly to speak with a qualified remortgage advisor.
4. Improve Your Financial Profile
Taking steps to boost your creditworthiness can help you secure better rates. Some useful actions include:
- Paying off high-interest debts
- Registering on the electoral roll
- Keeping credit card usage under 30%
- Setting up direct debits to avoid missed payments
5. Create a Realistic Budget
Lenders want assurance that you can afford your repayments. Use our budgeting calculator to understand your monthly finances and demonstrate responsible money management.
6. Gather Your Documents
Have the following ready:
- Proof of income (payslips or SA302s)
- Bank statements (last 3 months)
- Existing mortgage details
- Credit report
- ID and proof of address
7. Compare Remortgage Deals
Don’t go straight to your current lender. Shop around. Brokers can often find better deals through specialist providers who cater to bad credit clients as they aren't tied to a specific lender or product.
8. Be Honest and Transparent
When applying, disclose your full financial situation. Withholding information could result in rejection or worse, a black mark on your credit file.
Types of Remortgage Options for Bad Credit
- Fixed-rate mortgages – Lock in a consistent rate, ideal if your credit isn’t perfect but improving.
- Tracker mortgages – Can be cost-effective, but variable.
- Debt consolidation remortgages – Roll high-interest debts into your mortgage for simpler payments. Understand the risks involved with this and whether it's right for you by talking to a mortgage broker
Will I Pay Higher Interest Rates?
In most cases, yes. Lenders charge higher rates to mitigate risk. However, once your credit improves, you can often switch to a better deal later.
How Long After Bad Credit Can I Remortgage?
It depends on the severity, but to give you an idea:
- Minor late payments: 6–12 months
- Defaults: 1–3 years
- CCJs: 1–6 years
- Bankruptcy: 6 years after discharge
These timeframes may vary lender to lender and a broker can assess whether now is the right time or if it’s better to wait.
Tips to Improve Your Credit Score Before Applying
- Check for and fix errors in your credit file
- Pay all bills on time
- Avoid applying for new credit before remortgaging
- Use a credit builder card to establish positive history
Is Remortgaging with Bad Credit Worth It?
Absolutely — especially if:
- Your current deal is ending soon
- You want to reduce your monthly payments
- You need to consolidate debts into one payment
It requires planning, professional support, and a realistic look at your finances, but it can be a smart financial move.
Let Next Mortgage Steps Help You
At Next Mortgage Steps, we specialise in helping homeowners remortgage even when their credit isn’t perfect. We offer:
- Free credit report support
- Free expert mortgage advice tailored to your needs
- Help navigating specialist lenders
📞 Contact us today for a no-obligation consultation.
Need help budgeting? Try our free calculator to get started.
Ready to check your credit? Grab your free credit report now and take the first step toward remortgaging with confidence.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always consult with a mortgage advisor before making financial decisions. Your home may be repossessed if you do not keep up repayments of your mortgage.