Bad credit remortgages are available for people who do not have a perfect credit score, there are many reasons why people fail to make payments on time. Lenders understand this and will try to help if possible. Not all banks will provide this service and it is best to seek
remortgage quotes from a broker who will be able to source lenders in this market.
How Does a Bad Credit Remortgage Help You?
With
bad credit remortgages you can reorganise your finances to not only save you money each month but also clear up your credit score. If you can achieve this when you next look for a remortgage deal you will be able to access more favourable rates as your credit score will have improved.
What does a lender consider as Bad credit?
All lenders vary in what they class as bad credit, some high street lenders will take in to consideration minor blips that are historic. The rule generally is anyone that has defaults or late payment on credit cards or loans will be considered as bad credit. Missed payments on a mortgage or secured loan are another form. You may have been made bankrupt through a business venture; this will also impact on your score.
What is the main difference between a bad credit remortgage and a regular remortgage?
There are a few differences between regular and bad credit remortgages, the main one is the rate of interest. Generally you will find that rates for people with a low credit score will have to pay a higher rate of interest. Also you may find that the mortgage is not portable, if you were looking to move house you could not transfer the mortgage to anew house, which you can do with a regular mortgage,
How bad is bad, your details are keep on file for up to six years and lenders use cut off points to determine whether they will lend or not. Some lender will accept you if you have missed a 1 mortgage payment in the last three months, others will say none missed in the last twelve months. It is possible to find lenders who will ignore all bad credit that is more than three years old.
Due to the credit crunch there are less lenders in the market and those that will remortgage people with bad credit the criteria is much stricter than before. For more detailed
mortgage advice contact a whole of market mortgage brokers.
