Having a less-than-perfect credit history does not necessarily mean you are stuck on an expensive standard variable rate or locked out of better mortgage deals. There are specialist lenders, product transfer options, and practical steps you can take to improve your chances of remortgaging successfully, even with adverse credit on your file.
For a full overview of remortgaging, read our complete guide to remortgaging.
Can You Remortgage with Bad Credit?
Yes, in many cases it is possible. While high street lenders may decline applications from borrowers with adverse credit, there is a substantial specialist lending market that caters specifically to people with credit issues. These lenders take a more nuanced view of your circumstances rather than relying solely on credit scores.
The key factors that determine whether you can remortgage with bad credit include the type and severity of the credit issues, how long ago they occurred, how much equity you have in your property, and whether you can demonstrate current affordability. A single missed payment from four years ago is viewed very differently from multiple active defaults.
| Credit Issue | Severity | Typical Wait Before Remortgage |
|---|---|---|
| Late payments (1–2) | Low | Often accepted immediately by specialists |
| Defaults (satisfied) | Medium | 1–2 years after satisfaction |
| CCJ (satisfied) | Medium–High | 1–3 years after satisfaction |
| IVA / DMP | High | 1–3 years after completion |
| Bankruptcy | Very high | 1–3 years after discharge (specialist), 6+ years (high street) |
Specialist Lenders
Specialist or “adverse credit” lenders are mortgage providers that specifically design products for borrowers who do not meet high street criteria. They may accept applications from people with:
- Missed or late payments on credit agreements
- Defaults registered within the past six years
- County Court Judgments (CCJs), whether satisfied or unsatisfied
- Debt management plans (DMPs) or Individual Voluntary Arrangements (IVAs)
- Previous bankruptcy, typically after a minimum discharge period
- Low credit scores with no specific adverse events
Interest rates from specialist lenders are typically higher than high street rates, reflecting the additional risk they take on. However, they are almost always lower than staying on a lender’s SVR and can represent a significant saving. As your credit improves over time, you can remortgage again to access more competitive rates.
Specialist lender rates are higher than high street, but almost always lower than the SVR. Switching now and remortgaging again in 2–3 years as your credit improves is a proven strategy for reducing costs step by step.
Product Transfers
A product transfer means switching to a new deal with your existing lender rather than moving to a new one. This can be a particularly good option if you have bad credit, because product transfers often involve less rigorous checks than a full new application. Since you are already a customer and the lender already holds a charge on your property, they may not carry out a new credit search or full affordability assessment.
The downside is that you are limited to deals offered by your current lender, which may not be the most competitive on the market. However, a product transfer rate is almost always better than the SVR, and the process can be completed in days rather than weeks.
A broker can compare the product transfer options from your current lender with deals available from specialist lenders to determine which route saves you the most money.
Steps to Improve Your Chances
If you are planning to remortgage with adverse credit, there are several things you can do to strengthen your application:
- 01
Check all three credit reports
Get your Experian, Equifax, and TransUnion reports. Dispute errors and ensure satisfied debts are correctly marked.
- 02
Build 6+ months of clean payment history
Consistent on-time payments demonstrate financial recovery and carry real weight with lenders.
- 03
Reduce outstanding debts
Lowering credit utilisation improves your score and shows responsible money management.
- 04
Register on the electoral roll
One of the simplest credit score boosts — confirms your identity and address for lenders.
- 05
Speak to a specialist broker
They know which lenders suit your profile and can target the right one first time, avoiding unnecessary credit searches.
- Check your credit reports: Obtain your report from Experian, Equifax, and TransUnion and review each one carefully. Dispute any errors and ensure all satisfied debts are correctly marked as such.
- Build a positive payment history: Making all your payments on time in the months leading up to your application demonstrates to lenders that your financial situation has improved.
- Reduce outstanding debts: Paying down credit cards and other debts improves your credit utilisation ratio and shows lenders you are managing your finances responsibly.
- Register on the electoral roll: This is one of the simplest and most effective ways to boost your credit score.
- Avoid multiple applications: Each hard credit search leaves a mark on your file. A broker can target the right lender first time, reducing the number of searches.
- Use a specialist broker: A broker experienced in adverse credit knows which lenders are most likely to accept your profile and how to present your application in the best light.
Alternatives if Remortgaging is Not Possible
If your credit situation makes remortgaging difficult right now, there are other options worth exploring:
- Product transfer: As mentioned above, your current lender may offer you a new deal without a full credit check.
- Second charge loan: If you need to raise additional funds, second charge lenders are often more flexible on credit than first mortgage lenders.
- Wait and improve: If your adverse credit is relatively recent, spending six to twelve months building a positive payment history could significantly improve the deals available to you.
Whatever your situation, speaking to a specialist broker is the best first step. They can assess your credit file, understand your circumstances, and match you with the most suitable lender. Get started by completing our short online form.
- Bad credit does not automatically disqualify you — specialist lenders assess your full circumstances, not just a score.
- The type, severity, and age of credit issues all matter. Older, satisfied debts are viewed far more favourably.
- A product transfer with your current lender can bypass full credit checks entirely.
- Building 6+ months of clean payment history before applying significantly improves your options.
- A specialist broker can target the right lender first time, avoiding unnecessary hard searches on your file.