Bad credit remortgages

If you’re nearing the end of a fixed rate or your current deal no longer fits your budget, you may still be able to remortgage. Even if your credit history isn’t as strong as it used to be.

What matters is not just that you have adverse credit, but how lenders interpret the specific issue, how long ago it happened, and whether your overall mortgage position and affordability look manageable.

This guide explains the main factors that influence bad credit remortgage decisions, the most common adverse credit scenarios, and the practical steps that can help you prepare a stronger application.

This guide is written for homeowners remortgaging you may find these more useful for your circumstances:

Worried you should wait until your credit improves? Read bad credit mortgages: why you don’t need to wait
Have a larger deposit? Read bad credit mortgages with a large deposit
Buying your first home? Read adverse credit mortgages for first-time buyers
A landlord? Read bad credit buy-to-let mortgages

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Bad Credit Remortgage Guide

Can you remortgage with bad credit?

In many cases, yes. A remortgage with adverse credit is assessed in a similar way to a new mortgage application: lenders look at your credit report, your current mortgage conduct, your income and outgoings, and the loan-to-value (LTV) of the borrowing.

Bad credit can affect:

How many lenders/products are available
The maximum LTV you may be considered for
Whether additional borrowing is accepted
How closely affordability is reviewed

Even where a lender is willing to consider you, the outcome can depend heavily on the details for example, the amount involved, the date, and whether the issue is settled or still active.

How lenders treat different credit issues

There isn’t a single universal “bad credit score” that determines approval. Instead, lenders typically look at the *credit report and details such as:

What happened (late payments, defaults, CCJs, IVA, bankruptcy, etc.)
When it happened (recency is often important)
How it was managed (for example, whether it’s settled/satisfied or still active)
Your current mortgage conduct (whether payments are up to date)
Your wider financial picture (income stability and committed outgoings)

Because each lender has its own internal policy, two borrowers with the same headline event can receive different outcomes.

Specialist vs mainstream lender routes

With adverse credit, you may find that your remortgage options fall into two broad routes:

Mainstream lenders (where available) - Some high street lenders may consider borrowers with certain types of credit issues, particularly where the adverse events are older, limited in number, or where your finances have improved.
Specialist lenders - Specialist lenders are more likely to consider applications where the credit file shows adverse markers. They may also be more flexible about how they assess risk, although terms and requirements can vary.

A mortgage adviser can match your situation with lenders more likely to consider your circumstances, rather than relying on a one-size-fits-all approach.

Loan-to-value (LTV) and bad credit

LTV is one of the most practical factors in a bad credit remortgage.

With adverse credit, lenders may:

Reduce the maximum LTV they’ll consider
Offer fewer products at the same LTV as borrowers with cleaner files
Require a lower borrowing amount to meet risk criteria

This can mean you may need to borrow less than you initially planned.

What the remortgage money is for matters

A like-for-like adverse credit is easier to get accepted; one with additional borrowing adds complications.

The purpose of the remortgage can influence lender appetite.

Some purposes can be more sensitive than others. Being clear and consistent about how you'll use the funds can help avoid delays during underwriting.

Staying with your current lender vs switching

The two routes are very similar; either an existing or new lender will still check your credit file and mortgage payment history.

However, if you’re remortgaging with the same lender, the process can sometimes be simpler. They may be more flexible in changing products, considering the mortgage will stay with them (on a standard variable rate) after your initial rate ends anyway.

A mortgage adviser can check both and all options for you.

What to prepare before you apply

A well-prepared application can reduce delays and prevent avoidable issues.

Consider gathering:

Details of your current mortgage (account status, term remaining, repayment type)
A clear picture of your income and outgoings
Information about any adverse credit events (what happened and when)
Your credit report so you understand what the lender is likely to see

If you’re unsure what’s on your credit file, reviewing it before applying can help you identify anything that needs attention.

When it can help to wait (and when it can help to act)

Timing matters with adverse credit. Waiting may improve your position if:

The adverse credit is becoming older
A resolved issue is moving further away from a lender’s typical timeframes

However, waiting isn’t always the best option. If your deal is ending soon, or your current rate is no longer sustainable, exploring options earlier can help you understand what’s realistically available.

What to expect from the remortgage process with adverse credit

Every case is different, but the process usually follows a similar pattern:

Review your current mortgage position
- Your current rate, term, and any relevant conditions.
Check your credit file details
- Confirm the type of issue, dates, and current status.
- If there are errors, correcting them can be important before applying.
Match your profile to lenders appropriately
- Not all lenders interpret adverse credit in the same way.
Assess LTV and affordability together
- A lender may consider the credit event but still only offer up to certain LTV levels.
Submit the application with supporting information
- Proof of income, bank statements, and property details are commonly requested.
Valuation and offer
- The property valuation can affect whether the LTV fits the lender’s criteria.
Completion
- Once conditions are met, the remortgage completes and funds are used as agreed.

The most common bad credit remortgage scenarios

Lenders often treat applications differently depending on whether your current mortgage is performing well, whether your credit file has improved, and whether you’re borrowing more.

1) You’re on a good current deal, but new credit issues have appeared

If your credit file has changed since you took the mortgage—perhaps due to missed payments on other accounts—lenders will typically focus on recency and severity.

In this situation, it can help to consider whether you can realistically strengthen your file before applying, or whether staying with your current lender (where appropriate) is the more straightforward route.

2) Your current deal isn’t as good, but your credit has improved

If adverse credit is older and you’ve demonstrated stability since then, you may have more options than when the issue first appeared.

For many borrowers, this is where remortgaging can make the biggest difference—because the combination of improved credit profile and equity can broaden lender choice.

3) You want to remortgage and borrow more

Borrowing additional funds changes the risk assessment. Even if your existing mortgage payments are up to date, adverse credit can influence how much a lender is willing to consider.

Sometimes borrowers keep the existing mortgage and arrange separate borrowing for the extra amount, but whether this is possible depends on lender rules and affordability.

4) You want to borrow more, and your credit has improved

This can be a more flexible scenario if the adverse credit is no longer recent and you can show that your finances are stable.

However, lenders will still consider the overall borrowing request, the property value, and the purpose of the remortgage.

Frequently overlooked factors

Some elements that can affect remortgage decisions include:

Whether adverse credit is satisfied or ongoing
How many credit issues appear and how they are distributed over time
Whether you have maintained mortgage payments consistently
Your LTV and property valuation
Your current debt commitments

Key takeaways

Bad credit doesn’t automatically prevent remortgaging, but it can reduce lender choice and affect LTV.
Recency, severity, and resolution status of the credit issue are usually central.
Borrowing more money can change the risk assessment and may require a lower LTV.
Affordability still has to work, even if you have equity.
The purpose of the remortgage can influence how lenders view the application.

If you’re planning a remortgage with adverse credit, the best starting point is understanding your current position, then aligning your borrowing amount, LTV, and purpose with lenders more likely to consider your circumstances.