Got questions? We have answers.

We are often asked some great questions by our customers. We have answerd the most popular questions so that you can get some quick answers.

Can I remortgage my home with bad credit?

Yes, you can. A poor credit rating shouldn’t stop you from being able to access a range of competitive remortgage deals, even if you’ve had issues with CCJs in the past, or been discharged as a bankrupt. Our trained advisors will look past lenders with rigid criteria for accepting applications, and approach mortgage lenders who know a bad credit history or poor credit rating can easily be overcome by choosing the right mortgage product.

What credit issues will a lender consider when looking at my credit file?

Your credit file provides a detailed analysis of your financial history, so a prospective lender will want to study it in detail. They’ll look for evidence of missed or late payments or loan defaults, examining why this happened and whether it can be avoided in future. They’ll consider CCJs and IVAs, the existence of debt management plans and any history of bankruptcy.

Can I remortgage with CCJs?

A County Court Judgement represents a black mark on your credit history, but one black mark won’t prevent you being able to remortgage your home. Our lenders will consider applications from people with CCJs, particularly if there’s evidence that they’re working hard to minimise future financial issues. For many people, that’s actually a reason to remortgage, and Tailored Money has successfully helped many people to escape the cycle of debt with a well-chosen remortgage product.

Can I remortgage when my current mortgage is in arrears?

You may be able to, and our experts can advise on your options. It might be possible to remortgage and extend your mortgage term, to make monthly payments more manageable. Lenders might also be sympathetic to you switching from a repayment mortgage to a more affordable interest-only mortgage, providing you establish a plan to repay the outstanding capital at the end of the mortgage term.

I have previously been declared bankrupt or have been in a debt management plan. Does this preclude me from remortgaging?

Not at all. There will be a smaller pool of mortgage providers able to consider your remortgage application, but those lenders will appreciate that historic events shouldn’t follow you around for the rest of your life. If you can demonstrate a respectable financial track record since the debt management plan was put in place, or following your bankruptcy, Tailored Money will be happy to approach sympathetic lenders on your behalf.

How can remortgaging help me to consolidate my existing debt?

Remortgaging can be useful in a number of ways. It can allow you to consolidate existing debts in a single monthly payment, fixed for several years and with a far lower annual interest rate than many short-term loan products. It can be used to withdraw significant amounts of equity from your home, letting you clear historic debts and manage current ones.  Remortgaging could also lower your monthly payments with a more affordable deal than your current mortgage, especially if you’ve dropped onto your lender’s Standard Variable Rate, or SVR.

I’m not sure how bad my credit is. How can I get a copy of my credit report?

Credit reports are widely available, and it’s usually free to view a basic report on yourself. Simply Google ‘credit report’, and a number of service providers will come up. However, these are all underpinned by three main Credit Reference Agencies – Experian, Equifax and TransUnion. These CRAs gather information about your credit history, compile it into a report and calculate a benchmark score. It’s important to be aware that while the information they hold is generally the same, they calculate credit scores in slightly different ways, with scores ranging from 700 to 999.

Can I use a remortgage to release equity from my home?

Absolutely! This is one of the main reasons our clients often enquire about remortgaging. House prices in the UK have almost trebled in the last twenty years. If you’ve lived in your property for a while, it’s probably increased significantly in value, while your mortgage will have remained based on its original purchase price. Remortgaging can unlock tens of thousands of pounds of equity from your home, allowing you to pay off debts and undertake home improvements, and still make affordable monthly mortgage payments.

What is a ‘financial association’, and how will it affect my ability to remortgage?

A financial association is a person, business or other entity you’re linked to financially, either through credit or banking. For instance, a former business partner would be a financial association if you both hold company credit cards. If they have debts, this could appear on your credit report and damage your credit rating.

However, flatmates or relatives don’t become financial associations just because you share an address with them. You won’t even be associated with your spouse if you retain separate finances. 

What is a second charge mortgage and how is it different than a normal mortgage?

A second charge mortgage is a long-term loan secured on your home, and it’s an alternative to remortgaging. People can often borrow the value of any equity left in their property after their existing mortgage is repaid. For instance, a house worth £150,000 with a £100,000 mortgage could support a £50,000 second charge mortgage.

To be granted a second charge mortgage, your income will be closely stress-tested to ensure repayments are manageable. However, it’s a good option if your existing mortgage has a high early repayment charge, or if you’re self-employed and struggling to get an unsecured loan.

How long does it take to arrange a remortgage?

Although Tailored Money is able to process applications quickly, lenders can be rather slower at making decisions! A number of steps have to be completed (from a decision in principle to a full application being filed) before an offer is made and the conveyancing process can be completed. We would suggest allowing two months for a remortgage deal to be completed, but starting the process earlier gives you more time to consider your options and get paperwork sorted out.

Can I get a remortgage with no credit check?

If you’re approaching a new lender, a credit check is standard procedure. It’s a quick way for lenders to learn about your financial history, without asking you to fill in loads of forms or provide years’ worth of paperwork. However, remortgaging with your current provider shouldn’t require any credit checks. And you’re only likely to need a limited credit check (known as a soft check) when you’re investigating options with other lenders. You’ll only need a full (hard) check once you apply for a deal, so the lender can examine your history of financial activities.

I’ve been declined for a mortgage application. Can you still help me?

Many mainstream lenders have a rigid policy regarding remortgage applications. If anyone has a few blemishes on their credit history, they’re automatically rejected. These computer-based systems are inflexible, and there’s often no scope to appeal against a decision.

At Tailored Money, we specialise in helping people to obtain bad credit remortgages. Everyone’s financial history is unique, and some histories are more complex than others, so we can’t guarantee results. However, a previously refused mortgage application doesn’t mean you’re unable to remortgage at all. If it’s possible, we’ll make it happen.

Will a bad credit remortgage cost more than a high street lender?

The costs are likely to be slightly higher from specialist lenders than mainstream ones. However, more and more lenders are entering this market, increasing competition and driving down mortgage rates. In many cases, these rates are now at levels you might expect a high street lender to offer.

Because mortgage products are priced according to risk, your  individual circumstances will influence the cost of monthly mortgage repayments. Our advisors can provide information on this before you decide to proceed with a formal application.

Disclaimer

The information listed on this page is accurate at the time of going to print. However, lender policies and lending criteria are constantly changing, so please speak to one of our advisors for the latest advice. This content is meant for general information, and is not intended to serve as financial advice, or to represent every reader’s specific financial circumstances. Tailored Money advisors are fully qualified to provide mortgage advice under rules laid down by the Financial Conduct Authority, and they are able to provide specific advice based on your financial history and requirements. Mortgages are secured against your home, and your property may be repossessed if you do not keep up with repayments. Equity released from your property will also be secured against it, so please think carefully before taking out debts secured against your home.

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