Remortgages - even with a poor credit score

Bad credit mortgages and bad credit remortgages are available to people who have a poor credit rating. However, a bad or poor credit rating does not necessarily mean someone is a bad payer! A bad credit rating is often determined by a computer which does not always apply common sense. Lenders who specialise in bad credit mortgages or poor credit mortgages use more than just computers to assess an application.

How do I find my credit score?

Your credit profile is very important in determining whether or not an application for credit is accepted or declined. We recommend that our clients understand their credit rating and help improve their ability to get credit with your Equifax Credit Rating.

This can be done online with a payment of around £15.00 by credit or debit card. It is best to obtain this before applying for a bad credit mortgage and it will be needed by any specialist mortgage advisers you use to help you.

What is a bad credit mortgage?

A bad credit mortgage is a product that has been specially designed to help people with credit problems buy a property, or refinance to pay off other debts. The bad credit mortgage market has grown over recent years, in line with the increase in people who have a bad credit history. It is estimated that one in four people in the UK would be declined a standard mortgage because of their bad credit. This figure may increase even further due to current economic conditions
A bad credit mortgage is very similar to a standard mortgage. A lender will loan you an amount of capital, which you pay back to them with an agreed rate of interest added. You can choose from products where the interest rate is fixed, or where it can vary in line with inflation. The main difference is that the interest rates may be slightly higher than normal and there may be restrictions on how much money you have to pay and how often.

What help is available?

Even people who are researching standard mortgages can get confused by the different products available to them. Although the bad credit mortgage market is much smaller than the main mortgage market, it can still seem complicated. That's why it is a good idea to seek some expert advice. A bad credit mortgage broker will have a comprehensive knowledge of all the products on the market and will be able to look at your circumstances to see which products might suit you best. Not only do they have the expertise to find the right products, they can also help you to complete the application forms and sort out any difficulties that you may encounter.

What will the advice cost?

This will vary according to your own circumstances and the work involved in arranging the finance for you. Typically you should expect fees of around 1.0-1.5% of the loan and these can be added to the loan at completion if you prefer.

We have a community of independent financial advisers based throughout Scotland, England, Wales and Northern Ireland as well as a variety of services available over the telephone or via the internet. So even if you are not based near to one of our branches, we can still ensure that you will get quality independent financial advice from our IFA team.

Call free today on 0800 881 8085

9am - 5pm Monday to Friday or leave a message outside of these hours and we will call you back.