A missed payment from two years ago does not automatically close the door if you are trying to remortgage with bad credit. What matters is the detail behind the credit history: what happened, when it happened, whether it has been resolved, how the mortgage has been maintained, the equity in the property and whether the new borrowing is affordable.
For a homeowner nearing the end of a deal, the first comparison is often wider than “accepted or declined”. Our article on product transfers and new-lender remortgages explains why staying with the current lender and moving elsewhere involve different checks, costs and practical consequences.
Can You Remortgage With Bad Credit?
Yes, it can be possible, but “bad credit” is too broad a label to decide a case. A late payment, a satisfied County Court Judgment, recent mortgage arrears and a past insolvency event can all sit under the same everyday phrase while being treated differently in underwriting.
A credit score alone is not the whole case. The UK’s three main consumer credit reference agencies are Equifax, Experian and TransUnion, and lenders can use the underlying account conduct and public-record information rather than treating one headline score as a universal pass mark.
What Do Lenders Check When You Remortgage With Bad Credit?
Lenders look at credit history alongside affordability, equity, current mortgage conduct and the structure of the new loan. FCA mortgage rules require firms to assess whether a customer can repay the borrowing and interest, subject to limited exceptions and switching provisions.
For adverse credit, the questions become specific quickly: the amount, date and status of a CCJ or default; whether missed payments were isolated or repeated; whether mortgage arrears are current; and whether extra borrowing is being requested. Our explanation of mortgage affordability covers why strong equity does not replace an income-and-expenditure assessment.
Does the Age and Status of the Credit Problem Matter?
Yes. A CCJ normally stays on the Register of Judgments, Orders and Fines for six years. If it is paid in full within one month it can be removed; if paid later, it can be marked as satisfied but normally remains for the six-year period.
Bankruptcy is different again. In England and Wales, discharge usually occurs after 12 months, while the bankruptcy can remain on a credit reference file for six years from the bankruptcy date. A completed event is not treated as if it never happened, so lender criteria and elapsed time still matter.
Which Routes Exist If You Need to Remortgage With Bad Credit?
There are several routes to compare, and they do not all replace the current mortgage. The useful distinction is whether the aim is a new rate, a structural change or additional borrowing.
| Route | When it can fit | What changes | Main trade-off |
|---|---|---|---|
| Product transfer | No extra borrowing and the mortgage largely stays as it is. | The product changes with the current lender. | Fewer changes can mean fewer checks, but the wider market is not included automatically. |
| New-lender remortgage | A different lender or mortgage structure is being considered. | The old mortgage is replaced by a new one. | A fresh application normally brings credit and affordability assessment. |
| Further advance | Extra borrowing is needed from the current lender. | Additional borrowing sits with that lender. | The extra amount is assessed under current-lender criteria. |
| Second charge mortgage | Extra capital is needed while retaining the first mortgage. | A separate secured loan is added. | The first mortgage stays, but another secured commitment is created. |
A product transfer can matter where no extra money is needed. FCA rules contain switching provisions for some no-additional-borrowing remortgages, allowing modified affordability provisions in qualifying cases where the firm’s policy permits them and the new mortgage is more affordable than the relevant existing arrangement or indicated deal.
Worked Example: How Equity Changes the Conversation
Consider a hypothetical Wandsworth homeowner with a £500,000 property, a £300,000 mortgage and a satisfied £1,500 CCJ registered 30 months ago. The starting loan-to-value is 60%; if the homeowner also raises £25,000, the secured balance becomes £325,000 and the illustrative loan-to-value becomes 65% before fees.
The credit event has not changed, but the mortgage request has. A rate-only case could compare a product transfer with a new-lender remortgage, while extra borrowing could also bring a further advance or second charge into the discussion.
Can Debt Consolidation Be Part of a Remortgage?
Yes, additional mortgage borrowing can sometimes repay other debts, but the comparison must include the effect of turning unsecured borrowing into debt secured on the home. A lower monthly payment does not prove that the total cost is lower, particularly if repayment is stretched over a longer term.
MoneyHelper also warns that missed payments on secured borrowing can put the home at risk. Our article on the questions worth asking before increasing mortgage borrowing separates the need for extra capital from the separate decision about which mortgage route to use.
What Should Be Prepared Before an Application?
Good preparation means understanding the credit file before a lender does. We would normally want the current mortgage statement, income evidence, bank statements and a clear account of any adverse credit, alongside up-to-date credit information.
For a CCJ or insolvency history, dates, balances and whether an entry is satisfied or discharged can matter. A short factual explanation is usually more useful than a long defence: enough to show what happened, what has changed and whether the present mortgage remains affordable.
How Long Can a Bad-Credit Remortgage Take?
There is no single timetable because underwriting, valuation, legal work and requests for further evidence can all affect completion. Our guide to remortgage timescales explains the main stages; starting the review early leaves more room to compare an existing-lender route with a new application.
In Summary
A remortgage with bad credit can be possible, but the useful question is not whether one score is “good enough”. The case turns on the underlying entries, their age and status, mortgage conduct, affordability, equity and whether the request includes extra borrowing.
Staying with the current lender, moving to a new lender, a further advance or a second charge can all produce different underwriting and cost outcomes. The comparison needs to be made on the facts rather than assuming one route is automatically preferable.
Frequently Asked Questions
The answers below cover the points we are most often asked to separate when credit history and remortgaging meet.
Can I Remortgage With Bad Credit if I Have a CCJ?
Yes, it can be possible to remortgage with bad credit where a CCJ appears on the file, but acceptance depends on the lender and wider case. The amount, age, status, mortgage conduct, equity and affordability can all affect the assessment.
Is a Low Credit Score the Same as Adverse Credit?
No. A headline score is produced by a credit reference agency, while lenders also assess the underlying account history and public-record information. There is no single score used by every mortgage lender as a universal pass mark.
Will a Product Transfer Require a Credit Check?
Not in every case. Some straightforward switches with the existing lender can proceed without the same fresh assessment as a new-lender application, but additional borrowing or material changes can trigger further checks.
Can I Remortgage After Bankruptcy?
It can be possible, but lender criteria differ and the time since the event matters. In England and Wales, discharge usually occurs after 12 months, while bankruptcy can remain on a credit reference file for six years from the bankruptcy date.
Can I Remortgage While an IVA Is Still Active?
An active IVA makes the case more complex because the mortgage request has to sit alongside a formal debt arrangement and its terms. The position should be confirmed with the insolvency practitioner supervising the IVA and a regulated mortgage adviser before secured borrowing is pursued.
Can I Borrow More to Pay Off Credit Cards or Loans?
It can sometimes be possible, but moving unsecured debt onto property changes the risk and repayment profile. A lower monthly payment can still mean a higher total repayment if the debt is spread over a much longer term.
Does Having More Equity Make a Bad-Credit Case Easier?
More equity can improve the loan-to-value position and may widen available criteria, but it does not cancel adverse credit or replace affordability checks. The lender still considers the credit history, income, expenditure and requested mortgage structure.
Should I Wait Until Adverse Credit Is Older Before Applying?
Waiting can change which lender criteria are available because many policies distinguish between recent and older events, but delaying also has costs if an existing deal is ending. The comparison should include the current lender’s options, the cost of waiting and the realistic new-lender position.
Credit problems make remortgaging more fact-specific, not automatically impossible. We can compare the current-lender route with realistic alternatives and set out the costs and underwriting differences before an application is made.
