Everything you need to know about remortgaging with bad credit uk in the UK.
Yes, it is possible to remortgage with a poor credit history, though your options will be more limited than for borrowers with clean credit files. Many homeowners develop credit issues after taking out their original mortgage — missed payments, defaults, CCJs, or even an IVA or bankruptcy — and worry that they are trapped on their current deal or SVR.
The good news is that a growing number of specialist lenders cater specifically to borrowers with impaired credit. While their rates are higher than mainstream deals, they are often significantly better than the SVR you may be stuck on. A skilled broker who understands the specialist market can make a real difference to the deal you achieve.
Different types of credit problems have different impacts on your ability to remortgage. Generally, the more serious the issue and the more recent it occurred, the greater the effect on available rates and lenders:
Specialist lenders assess applications differently from mainstream banks. They take a more holistic view of your circumstances, considering the reasons behind credit issues and your current financial stability rather than simply rejecting based on a low credit score.
Rates from specialist lenders typically range from 5–9% for minor credit issues to 8–12% for more serious problems. While these are higher than mainstream rates, they are often better than SVRs (which can be 7–8.5%) and significantly better than being unable to remortgage at all. As your credit improves over time, you can remortgage again to access better rates.
💡 Many specialist lenders are only available through brokers and do not accept direct applications. A broker experienced in adverse credit remortgaging will know which lenders are most likely to approve your specific circumstances and can present your application in the most favourable light.
Before applying, take steps to strengthen your position. Check your credit file with all three agencies (Experian, Equifax, TransUnion) and dispute any errors. Ensure all current payments (mortgage, bills, credit commitments) are up to date, and avoid making any new credit applications in the months before your remortgage application.
If possible, reduce your LTV by paying down your mortgage or waiting for property value growth. Lenders are more willing to overlook credit issues when there is substantial equity in the property, as this reduces their risk. An LTV below 75% opens up significantly more options than 85% or 90%.
If remortgaging with a new lender proves difficult, a product transfer with your existing lender may be a viable alternative. Since you already have a mortgage with them and they can see your payment history directly, your existing lender may be more willing to offer you a new rate than a new lender who only sees your credit file.
Product transfers do not involve a new affordability assessment or credit check in most cases, which removes two significant hurdles for borrowers with bad credit. The rates may not be the cheapest on the market, but they will almost certainly be better than the SVR.
⚠️ Be cautious of companies that claim they can fix or repair your credit score for a fee. There is nothing these companies can do that you cannot do yourself for free. Legitimate credit improvement involves checking for errors, paying debts on time, and waiting for negative entries to age off your file after 6 years.
If you remortgage with a specialist lender at a higher rate, plan to remortgage again when your credit improves. Take out a shorter fixed-rate deal (2 years rather than 5) to give yourself the flexibility to switch to a better rate sooner. Use the time to rebuild your credit by keeping all payments current and reducing outstanding debts.
Many borrowers with adverse credit find that after 2–3 years of clean payment history and with their credit issues aging, they can remortgage onto near-mainstream rates. This progression from specialist to mainstream rates can save thousands of pounds per year.
A specialist mortgage broker is essential when remortgaging with bad credit. They know which lenders accept specific types of credit issues, can present your application to maximise approval chances, and often have access to exclusive rates not available directly.
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