Get approved by one of the bad credit mortgage experts

If you have bad credit and are looking to refinance you may have been declined by a lender or even turned away by a broker. This is the case a lot of the time as many advisors do not understand the complexities surrounding bad credit mortgages and naively think there are no flexible lenders out there willing to help. But luckily, we are here to help – follow the links below to find out how.

Is a refinance possible if I have bad credit?
I am mortgage free; can I get a better deal?
Why do I need to refinance?
What is an adverse credit history? (Do I have one?)
Can the lender repossess my house?

Is a refinance possible if I have bad credit?

It is possible although it can be harder to arrange, and you may be subject to sub prime rates from lenders. But even if you have defaulted on mortgage payments before or have large unsecured debts you can apply for a refinance, you just need the right person helping you.

You would choose from either a remortgage to clear debts or a second charge mortgage – the option that’s right for you depends on how much equity you have in the property, how much you want to borrow, the type and date of credit issues you’ve had, and the situation with the lender you already have. Our superheroes will get the best outcome for you as they understand the technical nature of bad credit refinance mortgages.

I am mortgage free; can I get a better deal?

In the mortgage world we call this an unencumbered mortgage as you own your home outright and would like to use it as equity to raise funds. You would be subject to the same criteria for bad credit mortgages as anyone else, but as you may have a decent amount of equity there’s likely to be a good number of options available.

Why do I need to refinance?

There is an endless list of reasons why you would like to refinance a property whilst you have bad credit. Some of the most common reasons are:

  • Rate switch to a better deal
  • Debt consolidation
  • Home improvements (new kitchen, extension, loft conversion etc.)
  • To raise a deposit for a buy to let or holiday home (or even raise enough funds for the whole purchase price)
  • Car purchase
  • Wedding
  • To invest in a business or other venture

A lot of lenders will let you refinance for many purposes, but some have restrictions on what they will lend for. Be sure to discuss your plans with our heroes beforehand to make sure they can find a suitable choice.

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Kathy G

I applied for a mortgage from another organization after seeing an excellent offer online, but my application was declined due to my credit history. I am grateful to MoneyNest for connecting me with their broker, who discovered out what the problem was and now I am a client of theirs 🙂

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Trevor N

I had a bad credit history and didn’t know how to apply for a mortgage. The superhero advisors from MoneyNest came into my life when they matched me with an agent who found the perfect lender willing to take on such risk, giving us both hope that there are still opportunities out here!

What is an adverse credit history? Do I have one?

An adverse credit history can be made up of the multiple factors listed below:

  • Mortgage arrears
  • Low or non-existent credit score
  • Defaults
  • CCJS
  • IVA
  • Bankruptcies
  • Debt management plans (DMP)
  • Repossession

Each issue can impact your ability to obtain a refinance mortgage. But the severity of your credit history will contribute the most to how your refinance application is viewed. This severity will be measured on what the issues are, when they were registered with credit reference agencies, and the level of equity in your property.

Lenders value your credit history as it is a vital tool for them to be able to determine whether you will commit the offence again and ultimately if you will pay them or not.

We have a talented team who really are superheroes when it comes to bad credit refinance mortgages. They can show you options you may not have come across before and they will go above and beyond to find a suitable option.

I have mortgage arrears; can I refinance?

Lenders do deem mortgage arrears as one of the more serious types of missed payments as it indicates that the borrower is in real financial difficulties and their overall creditworthiness. Lenders will consider the reasons behind mortgage arrears, particularly if it was a historical offence, and some will actually also lend more money to pay off any debt and get up to date – it depends on your circumstances at the time. We know big life events can disturb our ability to pay so some lenders can be more flexible.

I have defaults on my house, can I refinance?

In the current climate it is now more common for lenders to accept defaults for refinance applications. But there are still other factors to consider too. Lenders will want as much information as possible on the severity of the default, how many there are, when they happened and if the default has been settled. Not every lender checks the settled status as the date of the default is a much bigger issue as the more recent it is the more likely the lender will think the default will be repeated.

I have a CCJ; can I refinance my home?

Again, multiple aspects will impact this such as when the CCJ was issued and how much it was, how many CCJs you have, if it is satisfied or not and whether it will change the affordability for your mortgage application.

It is important to note that you have a much higher chance of being accepted if your CCJ was given two years ago or longer. But our mortgage experts do help people with CCJs that have been registered as recently as within the last 6 months.

I have an IVA; can I refinance my home?

The outcome will change based on whether the Individual Voluntary Arrangement (IVA) is still active or historical. Bad credit refinance mortgage companies favour refinance over new credit when it comes to IVAs, so it is possible to secure lending this way, with lenders perhaps stipulating you repay your IVA as part of the new refinance arrangement. You will likely need to prove a solid history of paying your IVA, mortgage, and other debts on time during your IVA or over the last 1-2 years.

I have a debt management plan; can I refinance my home?

Provided you meet the right criteria, refinance with a DMP is an option. In fact, a refinance can be used to help pay off the debt in the plan.

The level of debt in the DMP will have an impact on your affordability, even if you have a lot of equity in your property, so it is best to do an affordability calculator with our experts to weigh up your options.

Ultimately, you will have more options if your DMP is complete and historic, but even if your DMP is active and recent, there may well be options for you. Make an enquiry to consult one of the whole of market specialists who can give you the right advice.

I have been declared bankrupt; can I refinance my home?

There is a small pool of bad credit refinance mortgage companies out there who will consider a history of bankruptcy but like all other adverse history it will depend on certain factors. Our heroes know how to help as they have years of experience helping customers with bankruptcy charges from 1 – 6 years ago (and longer), bankruptcy mortgages with smaller deposits starting at 5% and customers with a history repossession – just to name a few.

I have had a repossession; can I refinance my home?

It’s certainly possible and something we help a lot of customers with. Like many negative credit issues, the longer the amount of time that has passed since the repossession the better.

Can the lender repossess my house?

Yes, like with any mortgage, if you do not keep up with your payments your home could be repossessed and sold by the lender to retrieve arrears and other costs. This is an agreement you make with your lender in mortgage contracts.

FCA Disclaimer

Based on our research, the information on this page is correct as of the time of writing. Because lender criteria and rules are frequently updated, please contact one of the advisors with whom we work to ensure that you have the most up-to-date accurate information. The content on this site is not tailored advice for each specific individual who reads it, therefore it does not constitute financial advice. All of our mortgage advisors are qualified to give mortgage advice and do so only for firms that have been licensed and regulated by the Financial Conduct Authority. They will provide you with any specialised information you require. The FCA does not regulate some forms of buy-to-let mortgages. Consider carefully before relying on other debts against your property. If you do not make payments on your mortgage, your home may be taken back by the lender. The equity released from your house will also be secured against it.

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