Bad credit remortgages: how to improve your chances

Bad credit remortgages: what it means

A remortgage is when you refinance your existing home, usually to change your interest rate, term, or repayment type. If you have adverse credit—such as CCJs, defaults, missed payments, an IVA, or bankruptcy—your remortgage options may be more limited and the application process can be more detailed.

The key point is that “bad credit” isn’t one single category. Lenders typically assess the type of issue, how recent it is, and how your overall finances look now.

How adverse credit affects remortgage applications

When you apply to remortgage, the lender will generally consider:

• Your credit history: what’s on your credit file and when it happened.
• Affordability: whether your income and outgoings support the new mortgage payments.
• Your property and loan-to-value (LTV): how much you’re borrowing compared with the property’s value.
• Your current mortgage conduct: whether you’ve been making payments on time.

Even if you’ve been paying your current mortgage, other credit issues can still influence how lenders view risk. Some lenders may be willing to consider adverse credit, while others may require a higher deposit/equity position or specific circumstances.

Common adverse credit markers lenders may consider

Different lenders have different criteria, but adverse credit often includes one or more of the following:

• CCJs (including whether they’re satisfied and how recently they were recorded)
• Defaults
• Missed payments (for credit accounts and sometimes other commitments)
• IVA or bankruptcy
• Debt management arrangements

Because remortgages are secured against your home, lenders may focus heavily on current affordability and mortgage payment history—but they still typically review the wider credit picture.

Specialist vs mainstream lender routes

With adverse credit, you may find that your remortgage options fall into two broad routes:

1) Mainstream lenders (where available)

Some high street lenders may consider borrowers with certain types of credit issues, particularly where the adverse events are older, limited in number, or where your finances have improved.

2) Specialist lenders

Specialist lenders are more likely to consider applications where the credit file shows adverse markers. They may also be more flexible about how they assess risk, although terms and requirements can vary.

A broker can help map your situation to lenders that are more likely to consider your circumstances, rather than relying on a one-size-fits-all approach.

What improves your chances of being accepted

If you’re planning a remortgage with adverse credit, strengthening the application can matter as much as the credit history itself.

1) Reduce your overall risk profile

Practical steps that can support your application include:

• Keeping all payments up to date on existing credit commitments
• Paying down revolving debt (for example, credit cards) where possible
• Avoiding new credit applications in the run-up to applying
• Correcting errors on your credit report (if any exist)

2) Consider your deposit/equity position

Remortgages are often easier to manage when you have more equity. A lower LTV can improve lender confidence.

3) Strengthen affordability evidence

Lenders will want to see that the mortgage fits your budget. Being able to evidence stable income and manageable outgoings can help, particularly if your credit issues are older but your current finances are strong.

4) Be clear and consistent about your circumstances

If your adverse credit is linked to a specific period (for example, illness, relationship breakdown, or a change in employment), lenders may respond better when the application is presented clearly and consistently.

Remortgage options to consider with adverse credit

Depending on your current mortgage and goals, you may encounter different remortgage pathways.

Rate/term remortgages

If you’re remortgaging to change your rate and/or term, the lender will still assess affordability and credit history, but your existing mortgage relationship can sometimes be a helpful factor.

Switching to a different repayment structure

Some borrowers consider moving between repayment types (where available). This can change the monthly payment profile and overall risk assessment.

Using a broker to match lenders to your profile

Adverse credit can mean you’re not simply “looking for the cheapest deal”—you’re looking for a lender whose criteria align with your circumstances. A broker can help you avoid unnecessary applications and focus on options that are more realistic.

What to prepare before you apply

A well-prepared application can reduce delays and prevent avoidable issues.

Consider gathering:

• Details of your current mortgage (account status, term remaining, repayment type)
• A clear picture of your income and outgoings
• Information about any adverse credit events (what happened and when)
• Your credit report so you understand what the lender is likely to see

If you’re unsure what’s on your credit file, reviewing it before applying can help you identify anything that needs attention.

Timing: when to remortgage with adverse credit

Timing can influence outcomes. In general terms, lenders may view adverse markers differently depending on how recent they are. If you have the option to improve your financial position before applying—such as paying down debt, ensuring all accounts are up to date, and avoiding new credit—your application may be stronger.

Frequently overlooked factors

Some elements that can affect remortgage decisions include:

• Whether adverse credit is satisfied or ongoing
• How many credit issues appear and how they are distributed over time
• Whether you have maintained mortgage payments consistently
• Your LTV and property valuation
• Your current debt commitments

Final thoughts

A bad credit remortgage is often possible, but it usually requires a more strategic approach than a standard switch. By focusing on affordability, reducing risk where you can, and matching your circumstances to lenders that consider adverse credit, you can improve your chances of finding a remortgage option that fits.

If you’re exploring remortgage routes, it can also be useful to understand how your credit history differs from other adverse scenarios—because the “impact” of bad credit can vary significantly between lenders and between individual cases.