"Can I Remortgage with Bad Credit?.........Yes you Can. "
It seems like nobody is willing to offer you credit. You’ve tried the high street lenders, and have seen the unbelievably low rates on offer. Why won’t they offer you these same great rates? The answer is simple, it’s likely that you have a poor (otherwise know as adverse) credit rating. Remortgage lenders need to know that you are in the position to repay any credit (with the added interest). Put in a crude way they are effectively evaluating you to see if you are a safe bet. As part of any credit application a remortgage provider will request a detailed background credit check.
These credit records are in effect a detailed report of your financial credit history.
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What loans \ mortgage do you currently have?
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What is the history making repayments?
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Have any payments been missed in the last 12 months?
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And so on and so on?
In addition to the above, each and every lender will set their own criteria to “score” a persons credit worthiness. Typical factors taken into consideration are:
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How old is the person apply for credit?
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Does the applicant own their own home? How long have they lived at this address?
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Are you in full-time employment? What is your annual salary? (If you have a variable income then you might be labeled has a higher credit risk).
So why do you have a bad credit rating?
It may not seem fair to you but the reality is that mortgage lenders have to analyse the risk of lending to you. Here are some factors that may contribute to your poor credit rating which in turn results in you getting turned down by lenders.
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You are facing bankruptcy or have already been declared Bankrupt.
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You are recently self employed with no accounts to prove your income.
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You are currently committed to an Individual Voluntary Arrangement (IVA).
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You have mortgage payment arrears.
There are many myths surrounding the workings of your credit history. To help you we compiled a list of bad credit myths and facts >>
My mortgage in is arrears, will I be able to remortgage?
If your mortgage is in arrears it means that you have got behind in payments or have not made a repayment for a period of time. If you are in arrears at time of application it will certainly limit your options and some lenders will be unwilling to accept. However a few may be flexible on condition that you have not been in arrears in the past 36 months. It must also be remembered that many lenders will not class your payment as late if it has been settled within 30 days.
Can you get a remortgage with adverse credit?
You’re trying to resolve your money worries but lenders are not even considering you. Don’t worry, you are not alone. Firstly there are lenders who are willing to arrange remortgages for people with a bad credit rating. However bear in mind that the rates that they offer may be higher than those offered by other lenders. This is entirely down to their higher perceived risk of lending to you.
Take comfort in the knowledge that specialists are available who deal exclusively with helping people with adverse credit. Their role is not pass judgment on your financial situation whatever the reason for you wanting to remortgage.
Get a Free Online Quote from Bad Credit 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