Trying to remortgage with bad credit?
It is a daunting process trying to obtain a remortgage with a bad credit history, especially during economically challenging times. Many borrowers are finding themselves in a position of hardship, having to consolidate debts and as a matter of priority save on their monthly outgoings.
Bad credit can occur when borrowers have had issues with late payments for mortgages, loans and credit cards.
Financial problems can result in arrears with existing mortgage payments and latterly county court judgements. This can all result in mortgage or credit card applications being turned down and a record of this on the applicant's file.
Adverse credit information can then lead to future applications being rejected, as this is seen as the borrower being of more of a risk to lenders.
Securing a remortgage with bad credit can then become a complicated and overwhelming job for borrowers who find themselves in these circumstances.
Some specialist lenders are willing to offer remortgages for those with a bad credit history, although generally speaking in the current mortgage climate they are limited.
Lenders view a remortgage with bad credit as a greater risk, and the amount of interest charged on a poor credit remortgage is normally higher than conventional mortgages.
Each remortgage application should be judged on the individuals situation and requirements, and a mortgage broker is usually the best experienced advisor to place a successful mortgage in these difficult circumstances.
Call Deal Direct if you need helping getting a mortgage.
