Can I Remortgage With Bad Credit? What UK Homeowners Need to Know
Published 9th of January 2013·Updated 11 April 2026
Reviewed by: Reviewed for accuracy April 2026
Yes, you can remortgage with bad credit, but your options will be more limited than for someone with a clean credit history. Specialist lenders and some high-street banks do offer remortgage products to borrowers with poor credit, though you should expect higher interest rates and stricter deposit requirements. The key factors lenders assess are your income, your equity, and the nature of your credit problems.
Short Summary
Remortgaging with bad credit is possible, but you are unlikely to access the most competitive rates. Lenders will weigh your credit history alongside your income and how much equity you hold in your home.
If your credit issues are relatively minor - such as a missed payment a few years ago - some high-street lenders including Halifax and NatWest may still consider your application.
More serious issues such as a County Court Judgement (CCJ), an Individual Voluntary Arrangement (IVA), or a bankruptcy will significantly narrow your options. Specialist lenders such as Pepper Money and Kensington Mortgages focus on exactly these situations.
A mortgage broker with access to the whole market is often the most efficient route when you have bad credit, as they can identify the lenders most likely to accept your application without you accumulating multiple hard searches on your credit file.
What do lenders look for when you remortgage with bad credit?
Lenders assess three main things: your ability to repay, the equity you hold, and your credit history. Each factor can work for or against you.
Your income stability matters a great deal. If you have recently changed jobs, been made redundant, or your income has dropped, lenders will be more cautious. A strong, stable income can offset a patchy credit history in some cases.
Your loan-to-value ratio (LTV) is also critical. If your home has risen in value since you first took out your mortgage, you may have more equity than you realise. Lenders typically offer better rates at 60, 75, and 80 per cent LTV; the more equity you have, the more negotiating power you hold.
How does your credit history affect remortgage options?
The type and recency of your credit problems matter as much as the problems themselves. A single missed payment from four years ago is treated very differently from a CCJ issued last year.
The three main credit reference agencies in the UK - Experian, Equifax, and TransUnion - each hold records for six years. Most negative marks, including defaults and CCJs, drop off after six years. If your credit event is approaching that threshold, waiting a few months before applying could meaningfully improve your options.
| Credit issue | Likely impact on remortgage |
|---|---|
| Missed payment (over 2 years ago) | Minor; most lenders still consider your application |
| Default (settled) | Moderate; specialist lenders more likely to help |
| CCJ (satisfied) | Significant; specialist lenders required |
| IVA (completed) | Significant; specialist lenders required |
| Bankruptcy (discharged over 3 years) | Severe; very few lenders; large deposit needed |
Can I remortgage to stay on my current lender's rate?
If you are coming to the end of a fixed-rate deal and simply want to switch to a new rate with your existing lender (a product transfer), your lender will usually not run a full affordability check or credit assessment. This makes a product transfer a viable route if your credit has deteriorated since you first took out your mortgage.
However, a product transfer does not involve shopping around for better rates from other lenders. You may pay more than necessary by staying put. A broker can help you compare what your current lender offers against the wider market.
How much deposit or equity do I need to remortgage with bad credit?
Most specialist lenders for bad credit remortgages require at least 20 to 25 per cent equity in your property, meaning your LTV must be 75 to 80 per cent or below. Some lenders will accept higher LTVs depending on how serious your credit issues are.
If your home has fallen in value since you took out your mortgage, you may be in negative equity. Remortgaging in negative equity is extremely difficult; contact your current lender directly, as they may offer retention products to help you avoid standard variable rate (SVR) costs.
Should I use a mortgage broker?
Using a whole-of-market mortgage broker is strongly advisable when you have bad credit. Brokers have access to lenders who do not advertise directly to the public, including many specialist bad credit lenders. They can also structure your application in the most favourable way and advise on timing.
Applying for multiple mortgages yourself in a short period leaves multiple hard searches on your credit file, which can further damage your score. A broker submits a single application to the most suitable lender, protecting your credit file in the process.
If you are unsure where to start, the Money Advice Service (moneyhelper.org.uk) has a free tool to help you find a regulated mortgage adviser.
FAQ
Can I remortgage if I have a CCJ?
Yes, but you will need a specialist lender. Lenders such as Pepper Money, Kensington Mortgages, and Together Money consider applications from borrowers with CCJs. A satisfied CCJ (one that has been paid off) is viewed more favourably than an outstanding one, and the older the CCJ, the better your chances.
Will remortgaging with bad credit cost more?
Yes. Lenders charge higher interest rates to borrowers with poor credit to offset the additional risk. The difference can be significant - sometimes 1 to 3 percentage points above the best available rates. That said, remortgaging from your lender's standard variable rate onto even a higher fixed rate can still save you money.
Does remortgaging affect my credit score?
Applying for a remortgage involves a hard credit search, which will appear on your credit file and may temporarily lower your score by a few points. The effect is usually minor and short-lived. If you are accepted and keep up with repayments, the remortgage will not harm your long-term credit health.
How long after bankruptcy can I remortgage?
Most lenders require a minimum of three years since discharge before they will consider your application, and many require six years. You will also need a substantial deposit, typically 25 per cent or more. A specialist broker is essential in these circumstances.
What if my remortgage application is refused?
Do not apply to another lender immediately, as each application adds a hard search to your file. Instead, ask the lender for the specific reasons for refusal, check your credit report with all three agencies for errors, and consult a mortgage broker before making another application.
Can I remortgage to consolidate debt if I have bad credit?
Some specialist lenders allow debt consolidation remortgages for borrowers with poor credit, but this carries risk. You are converting unsecured debt into debt secured against your home. If you miss payments, you could lose your property. Seek independent financial advice before pursuing this route; Citizens Advice and StepChange both offer free guidance.