Can You Remortgage With Joint Borrowers Who Have Separate Credit Issues?

When you remortgage as joint borrowers, lenders assess each person’s credit profile individually as well as the overall financial picture. This means one applicant’s missed payments, high credit utilisation or past adverse credit can affect the entire application — even if the other borrower has an excellent record. Understanding how lenders treat a remortgage joint borrowers separate credit issues application helps you prepare effectively and avoid unexpected outcomes.

This guide explains how underwriting works when one or both applicants have credit challenges, what lenders look for and the options available if your circumstances don’t fit standard criteria. This article provides general information only and does not offer regulated mortgage advice.

---

Do Joint Borrowers Need Perfect Credit to Remortgage?

No. Many lenders accept joint applications even when one borrower has a weaker credit profile — but lender choice may narrow depending on:

• The type of credit issue
• How recent it was
• Whether both applicants show stable financial behaviour now
• Affordability strength
• Loan-to-value (LTV) ratio

Lenders make risk decisions based on the highest-risk profile within the application.

---

What Counts as Separate Credit Issues for Joint Borrowers?

Common issues affecting one borrower include:

• Missed or late payments
• High credit utilisation
• Recent hard searches
• Defaults or CCJs
• Payday loan history
• Returned direct debits
• Overdraft reliance
• Recently opened credit accounts
• Old or unsettled adverse credit
• Address inconsistencies
• Low internal lender score

Even if only one borrower is affected, the application is assessed jointly.

---

How Lenders Assess Joint Borrowers With Uneven Credit Profiles

1. Both Credit Files Are Reviewed in Full

Lenders look at:

• Payment history
• Amount and type of credit
• Length of credit history
• Utilisation
• Missed payments
• Adverse markers
• Electoral roll status
• Financial links

Any negative item on either file can affect the decision.

---

2. The Weaker Credit Profile Often Dictates the Outcome

Because the mortgage contract binds both parties, lenders assess risk based on:

• The borrower most likely to miss repayments
• The severity of their credit issues
• The recency of those issues

Strong affordability does not automatically overcome recent adverse credit.

---

3. Affordability Is Still Calculated Jointly

Even if one borrower has credit issues, their income can still support the overall affordability assessment — unless a lender chooses not to use part of it due to risk concerns.

---

4. Underwriters Check Bank Statement Conduct for Both Borrowers

They review:

• Overdraft use
• Returned direct debits
• Spending patterns
• Regularity of income
• BNPL transactions
• Gambling patterns
• How each borrower manages day-to-day money

A clean profile from one borrower cannot fully compensate for weak bank conduct from the other.

---

How Different Credit Situations Affect Joint Remortgage Options

Below are common examples and how lenders typically respond:

---

Scenario 1: One borrower with excellent credit, one with a few late payments

Many high street lenders may still consider the case, especially if issues are older than six months.

---

Scenario 2: One borrower with a recent default or CCJ

Mainstream lender options narrow; specialist lenders may be required.

---

Scenario 3: One borrower with high credit utilisation

Automated scoring may fail, but manual underwriting lenders can take a more flexible view.

---

Scenario 4: One borrower with multiple hard searches

This may reduce scoring but doesn’t always block the application.

---

Scenario 5: One borrower with payday loan history

If the loan is older than 2–3 years, many lenders are more flexible.

---

Scenario 6: Large difference in incomes between applicants

Higher-income borrowers may sometimes carry the affordability, but lenders still assess both credit files.

---

Will Lenders Ever Ignore One Borrower’s Credit File?

No.
For joint mortgages, lenders must assess both borrowers.

However, some lenders offer alternative structures:

1. Sole applicant remortgage

One borrower applies for the remortgage alone (subject to affordability and legal transfer of equity).

2. Joint mortgage – sole proprietor arrangements

Allowed only by certain lenders; the credit assessment still includes both borrowers.

3. Removing one borrower at remortgage stage

If affordability allows, you can remove the borrower with credit issues (requires legal work).

---

What If Only One Borrower Has Strong Affordability?

Even if one borrower earns significantly more, lenders still require a full credit check on both applicants. If the weaker borrower has:

• A recent default
• Multiple missed payments
• High debt levels
• Ongoing financial instability

…the application may be declined unless a specialist lender is used.

---

How Loan-to-Value (LTV) Influences Lending Decisions

A higher deposit or more equity can improve your chances because:

• Lower LTVs reduce risk
• More lenders may become available
• Specialist lenders may offer stronger terms

For example:

• At 60% LTV: far more flexibility
• At 85–90% LTV: stricter criteria and fewer options

---

How to Strengthen a Joint Remortgage Application With Uneven Credit

(General Information Only)

Many joint borrowers choose to do the following before applying:

1. Improve Bank Statement Conduct

Aim for 3–6 months of stable financial behaviour across both applicants.

---

2. Reduce Credit Card Utilisation

Lenders view lower utilisation as reduced financial pressure.

---

3. Bring All Payments Up to Date

Even one recent late payment can impact scoring.

---

4. Avoid Taking Out New Credit

Hard searches can reduce the weaker borrower’s score further.

---

5. Check All Credit Files for Accuracy

Ensure address history and personal information align.

---

6. Consider Timing

Some borrowers wait until:

• Old adverse events have aged
• Utilisation reduces
• Bank conduct stabilises

These are general considerations only.

---

When Specialist Lenders May Be Suitable

Specialist lenders may be appropriate when:

• The credit issues are recent
• There are multiple types of adverse credit
• One borrower has low affordability but must remain on the mortgage
• High utilisation or recent borrowing affects scoring
• One borrower has returned from abroad with limited credit history

They use manual underwriting to assess the overall picture rather than relying heavily on automated scoring.

---

Can You Remortgage to Remove the Borrower With Credit Issues?

Yes — if:

• The remaining borrower meets affordability alone
• Their credit file is strong
• The lender supports transfer-of-equity changes

This can simplify future applications and remove financial association between borrowers.

---

Summary

A remortgage joint borrowers separate credit issues application is entirely possible, but the weaker credit profile will significantly influence lender choice. Lenders focus on:

• The severity and recency of credit issues
• Bank statement conduct for both borrowers
• Joint affordability
• Loan-to-value position
• Whether issues are isolated or part of a pattern

Many applicants still succeed, but specialist lenders may be needed if the credit issues are recent or more severe.

This article provides general information only. For personalised guidance, regulated mortgage advice is required.