Can you remortgage with adverse credit?

Yes, it may be possible to remortgage with adverse credit. Your options depend on what happened, when it happened, how you’ve managed your existing mortgage and whether the proposed borrowing is affordable.

You may be able to take another deal with your current lender, known as a product transfer, or apply to move your mortgage elsewhere. Those routes can involve different assessments, so a credit problem doesn’t automatically mean you need a specialist lender.

If you’re already struggling with mortgage payments, contact your current lender promptly. Getting support for a payment problem should come before making applications for another mortgage.

Which credit issues can affect a remortgage?

Adverse credit usually means negative information in your credit history, such as late payments, defaults, County Court Judgments (CCJs) or debt arrangements. The label alone doesn’t explain how a lender will assess you.

The useful details include:

• What the issue was and which account it affected.
• When it happened and how much was involved.
• Whether the debt has been settled or remains outstanding.
• Whether it was an isolated problem or part of a wider pattern.
• How you’ve managed your mortgage and other commitments since.

An old, settled credit-card default raises different questions from a current mortgage payment shortfall. We’d want the dates and details rather than assess the case from a credit score alone.

The number shown by a credit app is only part of the picture when lenders assess your credit history for a mortgage. There isn’t a universal score that tells you whether a remortgage with adverse credit will be accepted.

Experian’s remortgage guidance highlights existing repayment conduct, outgoings and how much of the home you’ve paid off. A lender needs to consider those factors together.

Could you switch deals with your existing lender?

A product transfer means taking another mortgage product with your current lender. Moving to another lender is a separate route when remortgaging.

Checking the current lender’s options can be particularly useful if your credit circumstances have changed since you first took out the mortgage.

The Mortgage Charter supports qualifying customers who are up to date with payments switching deals at the end of their existing fixed rate without another affordability check. The stated provision applies where you’re not seeking extra borrowing or a change to the repayment type or term. It concerns regulated residential mortgages, rather than buy-to-let.

That doesn’t mean every requested change is eligible. It also doesn’t establish that there will be no credit checks or guarantee access to a particular product. Ask your lender which products you can take and what checks apply to your proposed switch.

Your situation	What to investigate
Mortgage up to date; no extra borrowing or other changes	Current-lender products and eligibility for a straightforward switch
Considering a different lender	Credit, affordability, property criteria and switching costs
Borrowing more or changing the arrangement	Which further assessments apply
Currently behind on mortgage payments	Existing-lender support and addressing the shortfall

Before assuming a move elsewhere is needed, we’d check your existing deal, payment record and the products your current lender makes available. Then we can compare any suitable alternatives.

What will a new lender look at?

A new lender will assess the proposed mortgage against its criteria. The credit record matters, but so do the finances and property supporting the application.

Expect questions about:

• Your current mortgage balance and payment history.
• Income, household spending and other credit commitments.
• The property’s value, type and suitability as security.
• The amount you want to borrow and the proposed mortgage term.
• Any extra borrowing or changes to the existing arrangement.

Most new-lender applications involve an affordability assessment. Conditional FCA rules on modified remortgage assessments allow a different approach in some circumstances, subject to lender policy and eligibility. They’re not a general route to a mortgage without checks, and current or recent mortgage shortfalls can affect eligibility.

Two hypothetical profiles show why the starting point matters:

An older settled default, with mortgage payments up to date: the questions are whether the credit entry fits a lender’s criteria, whether the new payments are affordable and what the existing lender offers. The default’s presence doesn’t provide the whole answer.

A recent mortgage payment shortfall: the immediate questions concern the outstanding amount, why the payment was missed and what support is needed. A new application shouldn’t be treated as the way to solve an ongoing budget shortfall.

Neither profile predicts an approval. A previous credit problem may narrow the suitable options, making adverse-credit mortgage advice useful before choosing where to apply.

How could your equity affect your options?

Equity is the part of your home’s value that isn’t covered by mortgage borrowing. Loan-to-value, or LTV, expresses the mortgage as a percentage of the property value.

For example, assuming no additional borrowing or fees added to the balance:

Item	Amount
Property value	£300,000
Mortgage balance	£210,000
Equity	£90,000
LTV	70%

The calculation is £210,000 ÷ £300,000 × 100 = 70%.

If the lender instead valued the property at £330,000, the same £210,000 balance would give approximately 63.6% LTV, rounded to one decimal place. This is a separate valuation scenario, not a prediction that the property will rise in value.

A lower LTV may change the available products and pricing, but it doesn’t remove a default, CCJ or affordability problem. Limited equity may restrict the options further, depending on the lender’s criteria.

We’d check the requested loan against a realistic property value alongside payment history and affordability. The lender’s accepted valuation may differ from your own estimate.

What rates and costs should you compare?

Adverse credit may restrict product choice and affect pricing. There’s no single “bad-credit rate”, and a specialist mortgage isn’t automatically necessary or the best available option.

For each suitable route, compare:

• Monthly payments and the rate period: what you’d pay initially, how long the rate lasts and what happens afterwards.
• Product fees: including whether you pay them upfront or add them to the loan.
• Existing mortgage charges: particularly an early repayment charge if the switch happens before it expires.
• Other switching costs: legal, valuation and broker fees, allowing for any confirmed incentives.
• Term and remaining balance: how quickly you’re repaying the debt and what you’ll still owe at the end of the comparison period.

A lower monthly payment isn’t necessarily a lower overall cost. Extending a repayment mortgage’s term can reduce payments but increase lifetime interest, assuming the same borrowing and interest rate. Adding fees to the mortgage also means paying interest on them.

Use the same comparison period and include the remaining debt, rather than judging only the initial rate or monthly payment. An illustrative repayment calculation can help with budgeting, but it can’t establish whether a lender will accept your credit history.

What if you’re already behind on mortgage payments?

Contact your lender as soon as you can, explain the difficulty and ask about support. Don’t stop payments while trying to arrange a remortgage. If you’re unable to pay the full amount, discuss what you can afford and the next steps with your lender.

The FCA’s mortgage-support guidance explains that simply speaking to your lender won’t affect your credit file. An agreed change to payments may be reported differently, so ask how any proposed arrangement will affect your record and future costs.

For independent debt help, StepChange’s mortgage-arrears support explains practical steps and access to free debt advice. That support is separate from a commercial assessment of remortgage products.

How can you prepare before applying?

Gather the information needed to assess the situation before choosing a lender:

• Current lender, balance, rate, deal-end date and early repayment charge details.
• Mortgage payment history and any outstanding shortfall.
• Credit reports showing the relevant entries.
• Evidence of settled debts or disputed information, where relevant.
• Current income, spending and financial commitments.
• Estimated property value and requested mortgage amount.
• Whether you want a simple switch, extra borrowing or another change.

Checking reports and addressing errors is part of preparing your credit profile before applying. Settling a debt and removing its record are different things, so check what the report actually shows.

Avoid several speculative full applications. Understanding the likely criteria first can help you avoid applying for a product that doesn’t fit your circumstances.

With those details available, remortgage advice can help you compare the routes that fit your existing mortgage, credit history and intended change. We can assess those together before recommending whether and where to apply.