Bad credit remortgages

If you’re coming to the end of a fixed rate or your current deal no longer fits your budget, a remortgage can still be possible—even if your credit history isn’t as strong as it used to be.

What matters is not just that you have adverse credit, but how lenders interpret the specific issue, how long ago it happened, and whether your overall mortgage position and affordability look manageable.

This guide explains the main factors that influence bad credit remortgage decisions, the most common adverse credit scenarios, and the practical steps that can help you prepare a stronger application.

Can you remortgage with bad credit?

In many cases, yes. A remortgage with adverse credit is assessed in a similar way to a new mortgage application: lenders look at your credit file, your current mortgage conduct, your income and outgoings, and the loan-to-value (LTV) of the borrowing.

Bad credit can affect:

• How many lenders/products are available
• The maximum LTV you may be considered for
• Whether additional borrowing is accepted
• How closely affordability is reviewed

Even where a lender is willing to consider you, the outcome can depend heavily on the details—for example, the amount involved, the date, and whether the issue is settled or still active.

The most common bad credit remortgage scenarios

Lenders often treat applications differently depending on whether your current mortgage is performing well, whether your credit file has improved, and whether you’re borrowing more.

1) You’re on a good current deal, but new credit issues have appeared

If your credit file has changed since you took the mortgage—perhaps due to missed payments on other accounts—lenders will typically focus on recency and severity.

In this situation, it can help to consider whether you can realistically strengthen your file before applying, or whether staying with your current lender (where appropriate) is the more straightforward route.

2) Your current deal isn’t as good, but your credit has improved

If adverse credit is older and you’ve demonstrated stability since then, you may have more options than when the issue first appeared.

For many borrowers, this is where remortgaging can make the biggest difference—because the combination of improved credit profile and equity can broaden lender choice.

3) You want to remortgage and borrow more

Borrowing additional funds changes the risk assessment. Even if your existing mortgage payments are up to date, adverse credit can influence how much a lender is willing to consider.

Sometimes borrowers keep the existing mortgage and arrange separate borrowing for the extra amount, but whether this is possible depends on lender rules and affordability.

4) You want to borrow more, and your credit has improved

This can be a more flexible scenario if the adverse credit is no longer recent and you can show that your finances are stable.

However, lenders will still consider the overall borrowing request, the property value, and the purpose of the remortgage.

How lenders treat different credit issues

There isn’t a single universal “bad credit score” that determines approval. Instead, lenders typically look at:

• What happened (late payments, defaults, CCJs, IVA, bankruptcy, etc.)
• When it happened (recency is often important)
• How it was managed (for example, whether it’s settled/satisfied or still active)
• Your current mortgage conduct (whether payments are up to date)
• Your wider financial picture (income stability and committed outgoings)

Because each lender has its own internal policy, two borrowers with the same headline event can receive different outcomes.

Loan-to-value (LTV) and bad credit

LTV is one of the most practical factors in a bad credit remortgage.

With adverse credit, lenders may:

• Reduce the maximum LTV they’ll consider
• Offer fewer products at the same LTV as borrowers with cleaner files
• Require a lower borrowing amount to meet risk criteria

This can mean you may need to:

• Borrow less than you initially planned
• Rely more on equity (for example, if property values have increased)
• Consider a different approach to the borrowing structure (where appropriate)

What the remortgage money is for matters

The purpose of the remortgage can influence lender appetite, particularly if you’re taking out additional borrowing.

Common purposes include:

• Home improvements
• Debt consolidation
• Other purchases
• Gifts

Some purposes can be more sensitive than others. Being clear and consistent about how funds will be used can help avoid delays during underwriting.

Affordability: how much you can borrow

Even with equity, affordability still has to work.

Lenders typically assess affordability using your:

• Income (and whether it’s stable and verifiable)
• Monthly commitments (including existing debts)
• Essential living costs
• The additional borrowing amount (if applicable)

Where credit issues were linked to financial strain, lenders may pay extra attention to whether your circumstances have improved and whether your current budget looks sustainable.

What to expect from the remortgage process with adverse credit

Every case is different, but the process usually follows a similar pattern:

1. Review your current mortgage position

   • Your current rate, term, and any relevant conditions.

2. Check your credit file details

   • Confirm the type of issue, dates, and current status.
   • If there are errors, correcting them can be important before applying.

3. Match your profile to lenders appropriately

   • Not all lenders interpret adverse credit in the same way.

4. Assess LTV and affordability together

   • A lender may consider the credit event but still only offer up to certain LTV levels.

5. Submit the application with supporting information

   • Proof of income, bank statements, and property details are commonly requested.

6. Valuation and offer

   • The property valuation can affect whether the LTV fits the lender’s criteria.

7. Completion

   • Once conditions are met, the remortgage completes and funds are used as agreed.

Staying with your current lender vs switching

Staying with your current lender

If you’re remortgaging with the same lender, the process can sometimes be simpler. However, your credit file may still be considered—particularly if your circumstances have changed.

Switching to a new lender

Switching usually involves a credit check as part of the application. Because lenders interpret credit information differently, the same adverse credit event can lead to different outcomes.

Buy-to-let remortgages with bad credit

Adverse credit can also affect buy-to-let remortgages. In addition to credit considerations, buy-to-let lenders assess:

• Rental income
• Property risk
• Ongoing affordability of the investment

In practice, this can mean:

• More scrutiny of rental income
• A narrower range of products
• Potentially tighter LTV considerations

When it can help to wait (and when it can help to act)

Timing can be important with adverse credit.

Waiting may improve your position if:

• The adverse credit is becoming older
• A resolved issue is moving further away from a lender’s typical timeframes

However, waiting isn’t always the best option. If your deal is ending soon, or your current rate is no longer sustainable, exploring options earlier can help you understand what’s realistically available.

A structured approach can also reduce the risk of repeated applications that don’t align with lender criteria.

Key takeaways

• Bad credit doesn’t automatically prevent remortgaging, but it can reduce lender choice and affect LTV.
• Recency, severity, and resolution status of the credit issue are usually central.
• Borrowing more money can change the risk assessment and may require a lower LTV.
• Affordability still has to work, even if you have equity.
• The purpose of the remortgage can influence how lenders view the application.

If you’re planning a remortgage with adverse credit, the most effective starting point is understanding your current position and then aligning your borrowing amount, LTV, and purpose with lenders that are more likely to consider your circumstances.