Adverse Credit Remortgage Advice
Many people in the UK have bad credit histories. The cause can be something simple such as making a late payment to a credit card company or going over your overdraft limit. Note that every time this happens it will be recorded by a credit reference agency and may go against you when applying for credit in the future.
Past or current problems in someone’s credit history such as County Court Judgments (CCJs), Individual Voluntary Arrangement (IVAs) and Bankruptcies have previously limited credit options for these individuals. However homeowners with equity to release on their property now have the opportunity to re-mortgage their property and pay off their existing debts. Specialised lenders have realized that there is a growing market for these individuals and are more likely to accept your application even though you have bad credit. Individuals with bad credit may have been put off by past rejections from creditors however an increasing number of lenders are choosing to specialise in the area of bad credit remortgages (also named non-conforming or sub-prime).
I think I may have adverse credit, will I be able to remortgage?
The implication of having bad credit is that when applying for a remortgage your options will be limited. Some lenders will not accept anyone who has had bad credit in the past as they will not be confident that the debt will be repaid. If you have a bad credit history you will be considered a higher risk. If you do get accepted by a lender you will be charged a higher rate of interest as the rate you pay is dependant on your risk.
What can I do?
Firstly you should access your personal credit report from the credit reference agencies (either Experian or Equifax) who compile data on your credit history. Your credit report will highlight the following information:
Personal Information |
Credit Information |
Enquiries |
Public Information |
Name |
Dates accounts are opened & closed |
Made by potential employers/lenders/insurers/landlords etc made in last 2 years |
County Court Judgments & Bankruptcies will appear for up to 6 years |
This information should help you to understand reasons why you have bad credit.
To get your personal credit report click on one of the following links http://www.experian.com/ and http://www.equifax.co.uk/.
I have a low credit rating, what does this mean?
Your personal credit rating is based on a number of factors. Lenders will calculate your credit rating to decide whether to lend to you or not. If you are declined because your credit rating is too low it means that you are considered to be a high risk. For example if you have a history of late repayments you will be considered a higher risk than someone who always pays on time. However if you have never missed repayments it does not necessarily mean that you will have a high credit score.
I have a low credit rating, will I be able to remortgage?
Lenders all have different criteria on which they base their decisions to accept your application. There are some lenders who specialize in dealing with individuals who have lower credit ratings. However this flexibility usually comes with a higher rate of interest as you will still be considered a higher risk.
An important point to remember is to apply to a lender who you think will accept you. If you think that a particular lender is likely to reject your application, do not apply. This will only adversely affect your credit rating. The reason for this is that any past rejections you have will appear on your credit history and will be viewed by your next potential lender. Remember that requesting a quote or enquiring is completely different to actually making a mortgage application. We would encourage you to shop around and ask for mutiplie quotes. To help you with this, by submitting your basic details in the quote form below you will receive quotes from multiple lenders who will outline the best deals for your persoanl needs.
How can I improve my credit rating?
If you have your credit report consider the following advice:
Reason for adverse credit rating |
Action to take |
Missed or late repayments (e.g. credit cards, insurers) |
May sure that you always pay the full amount on time |
| Little credit history (e.g. never had a credit card) |
Open new accounts such as credit cards and manage them well to prove that you can manage debt responsibly |
| Previous County Court Judgments (CCJ), bankruptcies, IVAs |
If there is a specific reason as to why you obtained these such as redundancy or divorce explain this to a potential lender |
Inaccurate information or fraud. |
Access and review your credit file so that you are aware what information is being held on you |
| A lack of public information with your name on |
Register your name on the electoral role as lenders use the electoral role to track your name and current address. If you move inform the local council. |
Get a Free Quote from Adverse Credit Remortgage Specialists
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
The actual rate will depend upon your circumstances. Ask for a personalised illustration. There will be a fee for mortgage advice. The fee will normally be 2% of the mortgage advance, minimum of £950 and a maximum of £3000.The fee can usually be added to the mortgage amount.
Enable Finance Ltd. is authorised and regulated by the Financial Services Authority for mortgages and non-investment insurance. Buy-to-Let mortgages are not normally regulated by the Financial Services Authority.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE