Can You Remortgage with Bad Credit? Here’s How to Get Approved

If your credit history isn’t perfect, you might be wondering — can you remortgage with bad credit? The answer is yes, you often can.

Many people find themselves in this position after life events like job loss, illness, or financial strain. The good news is that having bad credit doesn’t automatically disqualify you from remortgaging. With the right preparation and guidance, there are lenders willing to help.

At Mortgage Bridge, we regularly help clients improve their credit profile and secure remortgages that fit their goals — whether that’s reducing payments, consolidating debt, or releasing equity.

Here’s everything you need to know about how to get approved.

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What Does “Bad Credit” Mean When Remortgaging?

“Bad credit” simply means your credit report shows a history that lenders consider higher risk. This can include:

• Missed or late payments

• Defaults

• County Court Judgments (CCJs)

• Individual Voluntary Arrangements (IVAs)

• Debt Management Plans (DMPs)

• Bankruptcy (discharged)

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Each of these affects how lenders view your application — but the impact varies depending on how recent or severe the issue was.

If your credit issues happened a while ago and you’ve maintained stability since, many lenders will still consider your application.

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Can You Remortgage with Bad Credit?

Yes, you can. There are specialist lenders who focus on helping homeowners remortgage with bad credit.

These lenders take a more flexible approach than high street banks, looking at your overall financial situation rather than just your score.

They consider factors like:

• How long ago your credit issues occurred

• How serious they were (a late payment vs. bankruptcy, for example)

• Whether the issues have been resolved

• Your current income and outgoings

• The equity you have in your property

If you’ve built up equity in your home — meaning your property is worth more than your outstanding mortgage — that can work strongly in your favour.

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Why Remortgage with Bad Credit?

Remortgaging with bad credit can help you:

• Lower your monthly payments: by switching to a better rate or longer term

• Consolidate debts: by combining existing loans or credit cards into your mortgage

• Raise extra funds: for home improvements, education, or life events

• Exit a poor deal: if your current lender’s rates are high or your fixed period has ended

Even with bad credit, remortgaging can be a smart financial move — especially if your situation has improved since your original mortgage.

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How to Improve Your Chances of Approval

If you want to remortgage with bad credit, preparation makes all the difference. Here are key steps to strengthen your application:

1. Check Your Credit Report

Start by reviewing your full multi-agency credit report through Check My File. It shows data from Experian, Equifax, TransUnion, and Crediva — the same agencies lenders use.

Look for:

• Incorrect or outdated entries

• Settled accounts not marked as “closed”

• Unrecognised activity that could indicate fraud

Fixing these early can raise your score and improve lender confidence.

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2. Pay Down Existing Debts

Reducing your credit card balances and personal loans lowers your overall debt-to-income ratio — a key factor in affordability checks.

Even small reductions show lenders that you’re managing credit responsibly.

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3. Stay on Top of Payments

For at least six months before applying, make every payment on time — from utilities and phone contracts to credit cards. Consistency counts.

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4. Build Up Equity or Savings

The more equity or savings you have, the less risk you pose to lenders. For instance, if you owe £180,000 on a home worth £250,000, you have 28% equity — a strong position.

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5. Work with a Specialist Broker

This is the most important step. A broker who understands bad credit mortgages — like Mortgage Bridge — can find lenders who accept your circumstances, saving time and stress.

We know which lenders are open to applicants with past issues and can present your case positively.

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What Lenders Look for in Bad Credit Remortgage Applications

Every lender’s criteria are different, but most focus on:

• Credit history: Type and timing of adverse records

• Loan-to-value (LTV): Lower LTV ratios (below 85%) improve approval odds

• Affordability: Stable income and manageable debts

• Property type: Some lenders have restrictions on flats or non-standard builds

• Stability: Consistent employment or business history

Even if your bank declines you, another lender may approve you — it’s all about matching your situation to the right criteria.

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Can You Remortgage After Bankruptcy or IVA?

Yes, it’s possible. Once your bankruptcy or IVA is discharged — usually after 12 months — some lenders will consider you after a waiting period.

If several years have passed and you’ve rebuilt your credit, you may qualify for more competitive products.

Specialist lenders understand that people recover from financial difficulties and focus more on current stability than past mistakes.

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Example: Remortgage Approved After Defaults

A recent client came to us after missing several credit payments during the pandemic. Their fixed rate was ending, and they wanted to avoid higher standard variable rates.

We matched them with a flexible lender who accepted their history, thanks to their strong income and property equity. Within weeks, they secured a new deal that reduced their monthly payments by over £200.

Bad credit didn’t hold them back — it just required the right approach.

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Final Thoughts

If you’re wondering whether you can remortgage with bad credit, the answer is almost always yes — as long as you work with the right guidance.

Even with past financial difficulties, many lenders are willing to help homeowners who’ve regained stability. By checking your credit, managing debts carefully, and speaking with a specialist broker, you can find a remortgage that works for your situation.

At Mortgage Bridge, we specialise in helping people remortgage with confidence — even when their credit history isn’t perfect.

If you’re ready to explore your options, we’re here to help you take the next step.