Can I Remortgage With Bad Credit? What You Need to Know
Published 9th of September 2012·Updated 3 April 2026
Reviewed by: Reviewed for accuracy April 2026
Yes, you can remortgage with bad credit. Lenders look at more than just your credit score; your payment history on your current mortgage, your income, your loan-to-value ratio and the age of any adverse entries all factor into the decision. Your options may be narrower and your rate higher than for someone with a clean record, but remortgaging with bad credit is achievable.
Short Summary
Bad credit does not automatically block a remortgage application. Many lenders, including specialist adverse credit lenders, will consider your case if you have kept up your current mortgage payments.
The older the adverse credit entry, the less weight most lenders give it. Missed payments from three or more years ago carry far less impact than recent defaults or County Court Judgements (CCJs).
Your loan-to-value (LTV) ratio matters significantly. The more equity you have in your home, the less risk the lender takes on, which makes approval more likely even with a weaker credit history.
Applying to multiple lenders in quick succession leaves hard search footprints on your credit file, which can make your score worse. Use a mortgage broker who can identify likely lenders without multiple hard searches.
How do lenders assess a remortgage application with bad credit?
Lenders weigh up several factors together, not just your credit score. The main considerations are your mortgage payment history, your income and affordability, your LTV ratio, and the nature and age of any adverse credit entries.
If you have made every mortgage payment on time for the past two or three years, many lenders will view this positively, even if you have had issues with credit cards, personal loans or utility bills. A consistent track record on the biggest debt you hold signals financial responsibility.
Recent severe adverse credit, such as a CCJ, individual voluntary arrangement (IVA) or bankruptcy registered within the last year, will severely limit your options. Specialist adverse credit lenders do exist, but their rates are considerably higher than mainstream products.
Does your loan-to-value ratio affect your chances?
Yes, significantly. A low LTV means you own a large share of your property, which limits the lender's risk if you default. Most mainstream lenders will consider bad credit remortgage applications more favourably at 75% LTV or below.
If you have savings available, using them to reduce your outstanding balance before applying can improve both your LTV and your chances of approval. Even moving from 90% to 85% LTV can open up additional products.
| LTV ratio | Likely options with bad credit |
|---|---|
| Under 60% | Access to most specialist and some mainstream lenders |
| 60% to 75% | Good range of specialist lenders available |
| 75% to 85% | More limited; specialist lenders only for most adverse cases |
| Over 85% | Very limited; may be restricted to current lender only |
How old is your bad credit?
Timing matters. Credit reference agencies Equifax, Experian and TransUnion keep most adverse entries on your credit file for six years. As entries age, their impact diminishes. A single missed payment from four years ago is unlikely to prevent a remortgage with a specialist lender. A CCJ registered six months ago is a much more significant obstacle.
If your bad credit predates your original mortgage application and you were still accepted then, that is a strong indicator that lenders at the time were comfortable with your risk profile. Your subsequent payment history since then carries weight.
What practical steps can improve your remortgage chances?
Several actions can improve your position before you apply.
First, check your credit reports with all three agencies: Equifax, Experian and TransUnion. All three offer free access to your statutory report. Look for errors and dispute anything that is incorrectly recorded, as mistakes do occur.
Second, clear any outstanding debts you can afford to pay off. Reducing credit utilisation and removing open defaults strengthens your file.
Third, wait. If you have gone through a difficult period in the last six to twelve months, allowing more time to pass and maintaining a clean record in the interim can make a meaningful difference.
Fourth, speak to a specialist mortgage broker before making any applications. Brokers who deal in adverse credit, such as those associated with the whole-of-market broker networks, can match you to lenders who are most likely to accept your case and conduct a soft search first to avoid harming your score further.
Should I stay with my current lender?
If your current fixed rate deal is expiring, your existing lender may offer a product transfer, which is a new deal without a full new application process. Product transfers often do not require a fresh affordability assessment or credit check, making them more accessible if your credit has deteriorated since you took out your original mortgage.
The downside is that your current lender's product transfer rates may not be competitive. A broker can compare the product transfer offer against the wider market to confirm whether it is worth accepting.
FAQ
Will remortgaging hurt my credit score?
A full remortgage application typically involves a hard credit search, which will leave a mark on your credit file and may temporarily reduce your score by a few points. Using a mortgage broker who conducts a soft search first avoids multiple hard searches if your application is declined and you need to try elsewhere.
How long after a CCJ can I remortgage?
Some specialist lenders will consider a remortgage with a CCJ that is 12 months or older, especially at lower LTVs. More mainstream options typically require three years to have passed since the CCJ was registered. If the CCJ has been satisfied (paid off), lenders generally view this more favourably than an unsatisfied one.
Can I remortgage if I am in an IVA?
Remortgaging while actively in an IVA is very difficult. Your insolvency practitioner and the creditors bound by the IVA would normally need to agree to any remortgage. Some specialist lenders will consider applications once an IVA has been fully completed and is noted as satisfied on your credit file.
What is a product transfer and is it the same as remortgaging?
A product transfer means switching to a new deal with your existing lender. It is faster and usually involves no legal fees or new affordability checks. A full remortgage involves switching lenders, which requires a new application, a solicitor and typically legal fees. If your credit has worsened, a product transfer is often the simpler route.
Should I use a mortgage broker if I have bad credit?
Yes. A broker who specialises in adverse credit can identify lenders most likely to approve your case, conduct a soft search to assess your chances, and guide you on improving your position before applying. This can save you from multiple failed hard searches that would further damage your credit file. Many specialist brokers charge a fee, but it is often worth paying given the complexity of adverse credit applications.