You may be looking to refinance a mortgage to fund home renovations or consolidate existing debts by taking out equity from your existing property. This can also be a good opportunity to secure a better deal on your current interest rate. However, if you have a history of bad credit you may be concerned as to whether this is even an option.
The good news is that it is still possible to refinance your home if you have bad credit. An adverse credit history comes with lots of complexities so using a bad credit mortgage broker will be your best option as they can navigate the process for you.
If you are looking to move to a different lender or borrow more most lenders will assess your refinance application in the same way they would as if you were a first-time buyer. A lot of high street lenders may automatically decline your application as they deem some adverse credit too high of a risk. This is why we recommend going straight to an expert like one of our bad credit superheroes as a mortgage decline could damage your credit file further.
There is a lot of specialist lenders out there who look at your application in detail, but they are not always available directly and have to be used via a broker. These lenders know customers will need help with the complex nature of bad credit refinance applications which is why they provide them exclusively via brokers.
There are many different factors that can negatively impact your credit history and deem you a bigger risk to lenders. These include:
You will not know what rate you could expect for a refinance mortgage without allowing an expert to assess your situation properly. We have provided some rate indications below of what you could expect, but do not rely on these scenarios as they may not match your situation.
Below is a list of rates accurate as of November 2021 based on a mortgage for £150,000 over 30 years. The rates are for demonstrative purposes only.
If you went direct to a mainstream lender they may not have the experience to help your situation. So, we recommend using one of our mortgage specialists straight away to save you time. Our platform matches you to a broker who specialises in the type of bad credit you have. Contact us below to get a true representation of what a mortgage could look like for you.
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