Bad credit remortgages: Find the best deal
Plenty of homeowners remortgage without having a spotless credit record. You might even save on your next deal.
Last updated on
Jun 6, 2025 11:52
A few blotches on your credit report don’t automatically doom you to the worst rates or being refused a remortgage. But they could mean fewer options and higher rates, which is why it’s worth getting some guidance.
Our guide explains what’s what and how to get the best deal.
It’s certainly possible to do this but it depends on how bad your credit track record is, how recent the problems are and whether you’re currently on top of them.
Any company lending money – including for a mortgage – wants to be sure you’ll repay it. If you miss payments, for credit cards or utility bills, for example, that gets reported to credit reference agencies. These agencies keep track of everyone’s credit history and give each one a score.
There’s no specific cut-off, but the lower the score, the more risky that person is considered to be.
Lenders look at your credit history before deciding whether to lend you money and at what rate. One late payment for a mobile phone bill 3 years ago is unlikely to worry them. But missing mortgage payments or failing to repay a loan will likely rule you out of getting a standard remortgage.
But there could still be options. Remortgaging could even save you hundreds of pounds each month, especially if you applied for your previous mortgage with bad credit but your credit history has improved since then.
Even if your situation hasn’t changed much, lenders have different criteria for who they’ll lend to – another lender might see you in a different light from your existing one. This means it’s important to shop around and consider specialist lenders.
Chatting to a broker like Habito, for free, can help you understand what’s available.
There are mortgages designed for people with bad credit. A bad credit remortgage could mean:
If your current mortgage deal is coming to an end in the next few weeks or months, don’t feel you have to stick around on your existing lender’s standard variable rate without checking for a better deal.
You could start by plugging your mortgage figures into our remortgage calculator and then chat with a Habito broker, for free.
There are a few reasons why you might want to remortgage. Your current fixed-rate deal might be ending, or if interest rates have fallen, you might be looking to benefit. A change in your relationship could also trigger a remortgage. Or perhaps you’re looking to fund home improvements.
If you have bad credit, lenders won’t be keen to lend you extra money to fund, say, an extension on your home. But if you need to fund essential repairs, they may see that as a sign that you’re being responsible in looking after your property, and be more willing to lend.
Give yourself time. Start planning ahead around 6 months before your deal runs out.
In the run-up to remortgaging, it’s important to keep up with your existing mortgage payments and other bill payments as much as you possibly can.
A lender will definitely check this and wants to be sure it can trust you to repay money you borrow.
Second, check your credit report is in the best possible shape. Make sure there are no errors on it and follow our tips on ways to improve a credit score.
Third, don’t apply for any credit or loans during this period, as that could affect your credit record.
A lender will initially do a “soft” credit check. This is like a sense check and won’t affect your credit record. But later in the process, it will do a full credit check – which gets recorded in your credit history – and determine whether you can afford the repayments.
Watch out for fees – your mortgage broker can go through any fees there might be, such as exit fees and arrangement fees. They can also talk you through whether it’s worth leaving a deal early, which usually means paying an early repayment charge.
It is possible to remortgage even if you’ve missed mortgage or loan payments, but it can be tricky. Don’t feel you automatically have to stay with your current lender without seeing what else is out there.
A broker can search through what’s available, including from specialist lenders, and could save you money on your next deal.
It’s certainly possible, but a lot depends on the bigger picture of your finances.
If you have a less than perfect credit history, it can be daunting to look at home finance options. But does having bad credit really mean that you can’t get a mortgage
Habito specialises in helping you get the best mortgage or remortgage, all online, for free