Poor Credit Remortgages
Having a poor credit history will not prevent you from getting a remortgage but it can be a problem if you are applying to regular high street lenders. However, there are lenders who specialise in this sector. So whatever your circumstance there is probably a remortgage product available for you. The following are some examples of the circumstances such lenders will consider:
- Discharged bankrupts
- IVA's
- CCJ's
- Arrears / defaults
When applying for a poor credit remortgage be honest about past difficulties. If you can show that you are working to resolve the situation, lenders will look favourably upon this when they assess your application.
Lenders will not lend if there is a high risk of non-payment. Part of this assessment involves the use of credit reference agencies such as Experian to carry out credit checks. These results are applied to their own credit scoring system and depending on your score a lender decides whether to lend or not and under what terms. A lender may offer you a remortgage but they may have a higher than average rate of interest, or ask for personal guarantees.
You should also bear in mind that applying directly to a lender could cause you further problems. If you are rejected other lenders will consider your past rejection when considering your new application. Applying through a broker eliminates this problem and you have the chance of getting a remortgage without damaging your credit history further.
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