Getting a remortgage with adverse credit used to be nearly impossible. Traditionally lenders would be reluctant to extend further lending products to those who had a poor history of using credit in the past and those needing to remortgage their property with find the conditions of lending agreements prohibitively adverse. These days, however, numerous companies offer mortgage and remortgage products to those with adverse credit ratings. If you feel this applies to you the following guide will help you find out more about getting a remortgage with adverse credit.
If you are in this situation, however, it should take a lot of thought before you make the step to remortgage your property. A remortgage is a big move as it requires putting up your home as collateral. If you are confident you can pay the entire amount back without incurring any penalties then, no matter how adverse your credit score may be, this can be a great way to get a quick injection of money.
Sub Prime Remortgage
If you seek a remortgage with adverse credit it is likely you will need to find a sub prime mortgage lender. These lenders specialise in dealing with applicants whose adverse credit scores find them unable to get a mortgage elsewhere. Sub prime lending can be a great help to those who have had difficulty with repayments in the past but they also come with their own risks and potential pitfalls. If you are aware of what these pitfalls are and are confident you can avoid them, however, purchasing a remortgage with adverse credit can be a really smart move as the advantages are many.
In order to cover the extra risk of agreeing to a remortgage with adverse credit lenders of sub prime products will apply an adjustable rate of interest to the capital. This is an intentionally unpredictable interest rate which is highly likely to shoot upwards quite soon after the term of your loan begins. Known in some companies as a "floating rate" it will most likely begin at the company standard rate but can increase significantly as little as a single month into the repayment process. This can come as a shock to some buyers as the sudden hike in their repayments is not something that is easy to prepare for.
The disadvantages of sub prime lending are, therefore, quite clear. The advantages, however, are also extremely strong. If you have a consistent, solid budget planned for the term of the remortgage which takes into account the potential changes in the interest rate then it can be one of the best ways to repair an adverse credit rating. If you make it through the term paying back consistently and carefully, by the end you should be able to apply most credit products on the market as you will have proved your trustworthiness as a borrower.
Other Options
If you are in an adverse situation due to financial history and looking to remortgage, you should be aware that sub prime lending might not be your only option. There are no hard and fast rules of granting or not granting a remortgage with adverse credit and just because one lender turns you down does not mean everyone will. In fact one mortgage company could refuse you on a second mortgage due to your low rating, while another could grant you an even better mortgage with a better set of conditions. There is nothing in UK law which governs the offering of a remortgage with adverse credit so shopping around could help you avoid sub prime lending.
If it is possible for you to get a fixed rate remortgage with adverse credit this is advisable. Fixed rates charge interest above the standard rate but guarantee that it will remain in the initial position throughout a set term of time. Fixed rates are helpful to those who have previously had difficulty with borrowing as they allow you to budget for all repayments. As the interest rate will not go up or down during the term you will not suddenly find yourself paying more than you had bargained for. Keep in mind however that fixed rates do come with the disadvantage of not coming down in line with the lender's standard rate, so it can be quite frustrating if you sign up for a fixed rate to save money and then find it ends up costing you extra.
There was a time when having some financial mistakes in your history disqualified you from getting second mortgage and all the benefits of doing so. Luckily it no longer needs to be like that. Sub prime lenders now allow you to remortgage with adverse credit. So if you think taking out further borrowings using your home as collateral is the right move, you should look into what they are offering.
WHAT PEOPLE ARE SAYING
Using this site meant we didn't have to worry about whether we were getting the best rate on a remortgage or not, because all the available quotes were there to compare.
Secure a Remortgage with Bad Credit. We compare 100s of bad credit remortgages to find the best deal for you. Competitive online quotes;
Credit Problems | Remortgage Deals
Bad Credit Remortgage who has mortgage products available to people with a poor credit market remortgage quotes to ensure you get the best deal;
Remortgage Quotes
Home > Remortgages > Remortgage Quotes. you remortgage onto the best deal. tables for todays best deals. For those with bad credit or more complex income
Remortgage Quote, get an instant remortgage quote from Go ...
Remortgage Quote; Remortgage Rate ; Best to compare over 3000 remortgage quotes updated daily to give best Bad Credit remortgage/ccj
Adverse Credit Remortgage - Remortgage Deals | Compare ...
for an adverse credit remortgage. Compare bad credit remortgage quotes. Whilst an adverse credit history an adverse credit remortgage deal in touch
Just Bad Credit Mortgages - Just Mortgage Brokers
Remortgage; Bad Credit Advice; helping our clients to find the very best deals when they require bad credit mortgages. No obligation quotes.
Remortgage Adverse Credit
remortgage adverse credit With the Current Economic Crisis and Global Recession it is imperative to deal with bets Mortgage Quotes. Find Out best deals in NY
Remortgage Quote Best Deals, Fast Quotes
Obtain a Remortgage quote online is simple and easy to do. You can fill in as many Remortgage quotes as you like, Adverse Credit - Best Rate Mortgage -
Adverse and Prime Remortgages : Remortgage.com
We can help you get the best deal to suit than average interest rates on an adverse remortgage, of remortgage deals even if you have had bad credit,
Remortgage Deals - Where Lenders Compete for Business
Finding online remortgage quotes is a great A poor credit remortgage may be the best option When you find the best deals, a remortgage can help you
