If your current mortgage deal is ending and your credit profile is not as strong as it used to be, it is natural to feel concerned about what comes next. Some homeowners assume bad credit means they have no remortgage options, but that is not always the case.
At CW Mortgages, Ian Smith helps homeowners across Essex understand whether remortgaging may still be possible, whether staying with the current lender makes more sense, and what factors are likely to matter most.
Can you remortgage with bad credit?
Sometimes, yes.
The answer often depends on the type of credit issue, how recent it is, how serious it was, and what the rest of your finances look like now. Your income, affordability, available equity and current mortgage position all play a part.
Why bad credit can affect remortgaging
Lenders may pay close attention to issues such as:
- recent missed payments
- defaults
- CCJs
- increased debt levels
- payday loan history
- financial strain shown on recent bank statements
Remortgage or product transfer?
If your credit history has worsened, switching lender may not always be the easiest option. In some cases, a product transfer with your current lender may be more realistic. In others, a full remortgage may still be possible depending on your circumstances.
What can improve your options?
Depending on your situation, it may help to:
- review your credit file early
- avoid new borrowing before your deal ends
- reduce balances where possible
- keep your bank statements tidy and easy to explain
- understand how much equity you have
- start reviewing your options before the deadline approaches
Remortgage advice across Essex
If you are unsure what bad credit means for your next mortgage move, it is often worth reviewing your position early rather than waiting until the last minute.
If you need a clearer view of your next mortgage move, speak to CW Mortgages about your remortgage options.
