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Remortgaging with adverse credit follows the same broad process as any remortgage: check your position, compare options, apply, get assessed, and complete the legal work. The main difference is in the preparation, checking your credit file carefully and understanding which lenders, including specialist ones, might consider your circumstances before you apply.
Step 1: Check your credit file
Before doing anything else, get your free statutory credit report from all three main agencies: Experian, Equifax and TransUnion. Lenders may use one, two or all three, and the information is not always identical. Look for:
- The exact date of each CCJ, default or missed payment, since most negative entries stay on file for 6 years from that date.
- Whether entries are marked satisfied or settled.
- Any errors, such as accounts you do not recognise or debts marked unpaid that you have actually settled.
- Whether you are on the electoral register at your current address, which helps lenders verify your identity.
Our guide on what adverse credit is explains how lenders tend to view different types of entry.
Step 2: Understand your circumstances and what you want
Be clear about why you are remortgaging: is your current deal ending, do you want to borrow more, or has something changed since you took out your mortgage? This affects which route makes sense.
- If your deal is ending and you are not borrowing more, a product transfer with your current lender may be worth comparing, since it may not need a full affordability assessment.
- If you want to borrow more, for example to consolidate debts, remember this makes those debts secured against your home, so read our guide on debt consolidation remortgages carefully first.
- If you are self-employed, lenders commonly ask for accounts or tax calculations, so our guide on self-employed bad credit remortgages is worth reading alongside this one.
Step 3: Compare your options
| Route | When it may suit you |
|---|---|
| Product transfer with current lender | Not borrowing more, want fewer checks, credit issue is recent |
| Specialist lender via an adviser | Recent or more serious adverse credit, or declined elsewhere |
| Mainstream lender | Older or settled adverse credit, good LTV, stable income |
| Waiting and improving your position | Credit issue is close to dropping off, or affordability needs work |
A specialist mortgage adviser can search a wider range of lenders than you might find alone, and can help you understand what different lenders are likely to consider, though nobody can guarantee approval.
Step 3a: Consider getting advice
A specialist mortgage adviser is not compulsory, but many people with adverse credit find it useful, since advisers who work regularly with lenders that consider CCJs, defaults, mortgage arrears or other adverse credit often know which lenders are more likely to look favourably at particular circumstances. An adviser can also help you present your application clearly, for example explaining what happened around a default and what has changed since. This is different from being told which mortgage to take, and no adviser can guarantee an outcome.
Step 4: Apply
Once you have chosen a route, you will typically need:
- Proof of identity and address.
- Recent payslips or, if self-employed, accounts or tax calculations.
- Bank statements.
- Details of your existing mortgage and any other debts.
Being upfront about any adverse credit at this stage, rather than hoping it will not come up, tends to lead to a smoother application, since the lender will see it on your credit file regardless.
Step 5: Valuation and assessment
The lender will value your property, often using a desktop valuation, and assess your income and outgoings against its affordability criteria. It will also review your credit file in detail, considering the type, amount, age and status of any adverse credit. This stage can take longer for applications involving adverse credit if the lender wants more information or explanation. Our guide on how long a remortgage takes explains the timeline in more detail.
Step 6: Offer and legal work
If approved, the lender issues a mortgage offer. A solicitor or conveyancer, often provided free as part of a legal package, then handles the transfer: checking the title, redeeming your existing mortgage and registering the new one. Our guide on whether you need a solicitor to remortgage explains this stage.
Step 7: Completion
On completion day, your new lender pays off your existing mortgage and your new deal begins. Keep a note of your new deal’s end date so you can plan ahead for your next remortgage or product transfer in good time.
What to do if things do not go smoothly
Being declined by one lender does not mean every lender will reach the same view, since each sets its own criteria. If you are declined, it is worth understanding why if possible, checking your credit file again for errors, and speaking to a specialist adviser rather than making several separate applications, since each hard search is visible to other lenders. If you are struggling with debts or arrears at any point in this process, free and impartial help is available from MoneyHelper, StepChange and National Debtline, and speaking to your current lender early is always worthwhile if you are worried about keeping up with payments. Our bad credit remortgage page gives a fuller overview of the options available to you.
Frequently asked questions
Where should I start if I have a CCJ or default?
Start by getting your free statutory credit report from all three agencies, so you know exactly what a lender will see, including the date of the CCJ or default. Then compare a product transfer with your current lender against specialist lenders who consider adverse credit, ideally with the help of an adviser. See remortgaging with a CCJ.
Do I need a specialist adviser to remortgage with bad credit?
It is not compulsory, but a specialist adviser familiar with adverse credit can help you understand which lenders might consider your circumstances and how to present your application. This is not the same as being told which mortgage to choose, and no adviser can guarantee an outcome.
What if I am declined?
Being declined by one lender does not mean every lender will say the same, since each sets its own criteria. It is worth understanding why you were declined if possible, checking your credit file for errors, and speaking to an adviser about specialist lenders before applying elsewhere, since several applications in a short time can leave multiple hard searches on your file.
Should I fix my credit file before applying?
Where you can, yes. Correcting inaccurate entries, registering to vote at your address, and avoiding new hard-searched credit applications in the run-up to your remortgage can all help. Some issues, such as a genuine unpaid default, cannot be removed early, but understanding your file helps you plan realistically.