Can I remortgage with bad credit?

Having "bad credit" doesn't mean you can't get a mortgage, it's all about your specific situation and there are a wide array of lenders on the market with flexible lending criteria that might suit you.

The term “bad credit” can describe many situations, from having missed two or three payments on a credit agreement to more formal remedies for insolvency like bankruptcy. The situation regarding remortgaging will depend on when the bad credit occurred and, sometimes, an explanation of what led to it.

If you missed a limited number of payments for relatively small amounts on unsecured borrowing such as credit cards or personal loans, and these that occurred more than a year or two ago, they are unlikely to have a significant impact on remortgaging. If they were for secured borrowing such as a mortgage, or within the last year, it might limit the number of lenders available. You might decide to wait until a few more months have passed to demonstrate you are in control of your spending.

Where there are Count Court Judgements (CCJs), either current or satisfied, especially if the amounts are for more than around £500, a specialist lender needs to be considered. Lending is usually available, but the interest rates will be higher than from the high street banks and building societies. Defaulted credit arrangements come into the same category.

If you have been through bankruptcy or Individual Voluntary Arrangement, borrowing is not likely to be available until you have been discharged. Some specialist lenders may be willing to offer a mortgage very soon after the procedure is finished but, if you can wait 3 to 4 years following discharge, you should be able to borrow at a normal rate from some high street lenders.