Can I Remortgage My Home if I Have Bad Credit? 

Finance providers and brokers who could help you to remortgage your home if you have bad credit include:

• Imagine Finance
• Crystal Clear Home Loans
• Promise Finance
• First Plus
• Only Finance
• Regal Finance

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

UK lenders usually refer to a loan secured against property (a house or apartment) as a mortgage.  A remortgage takes place when a new mortgage is entered into on a property which is already subject to a mortgage.  The original mortgage may be replaced by the new mortgage or a second mortgage may be taken out.

Bad Credit History

If you have found it hard to keep up with payments on your credit cards and other debts you may have damaged your credit rating.  This will almost certainly make it hard to obtain new loans or credit cards, you may be asked to provide security for any borrowings and lenders may require you to pay a higher rate of interest.

What Do My Credit Records Show?

The first thing to do if you suspect that you have a poor credit rating is to check.  You can find details of your credit rating by visiting Experian and Equifax. Knowing what information the lenders will receive about you can be helpful because it allows you to address any concerns which a lender may have once they see your credit history.  You can also check that your credit details are accurate.

Could a Remortgage Help Me?

Remortgaging your home can be a way to pay off debts which carry a high rate of interest.  This may then enable you to keep up with your monthly payments.  This form of remortgaging is usually referred to as debt consolidation.  

It is worth taking care to make sure that a remortgage is the best route for you to take.  Many of the mortgage and debt consolidation companies will offer advice to help you to consider your options.  A major downside is that, if you borrow money secured against your home, you may lose your home if you do not keep up with the repayments.  For further issues to consider go to Questions to Ask if You Remortgage Your Home.

Will the Lenders Give Me a New Mortgage?

It is a good question to ask.  Lenders are primarily concerned to make sure that, if they lend money to you, they get their money back and earn some interest.  If you fail to make repayments that is a problem for them.  Generally a lender will consider that, if someone has failed to repay a debt in the past, they are more likely to fail to do so again than someone who has a pristine credit history.

For this reason, a lender will look very carefully at any request to borrow money from someone with an adverse or sub-prime credit history.  The lender will regard the loan applicant as a higher risk and require more interest on any loans to take account of the extra risk to the lender.

A lender also will feel more comfortable with a high risk loan if security is offered.  This is because, if the borrower does not make the required repayments, the lender may have the option of repossessing the house or taking control of any other security provided.

So the good news for borrowers is that it may be possible to remortgage your house even if you have a bad credit history.  In the UK secured loans may be obtained.

The word of caution is that you have to be very sure that you can make the repayments because if your loan is secured against your home, you may lose your home if you fail to pay the amounts due to the lender.

Lenders who are willing to consider mortgage applications with borrowers with less than perfect credit histories include:

• Regency Remortgages
• Nemo Loans
• Finance Trader

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

© Local Service Guide 2007 Bad Credit Remortgage Loans UK