If you’re trying to remortgage with bad credit in the UK, it’s easy to assume the answer will be no before you even explore your options. Missed payments, defaults or a difficult period a few years ago can feel like permanent barriers. In practice, many homeowners in this position do still remortgage successfully.
The difference usually comes down to understanding how lenders assess risk, knowing where flexibility exists, and avoiding rushed decisions that cause unnecessary declines. We are going to focus on realistic options and not best-case promises.
What Lenders Really Mean by “Bad Credit”
Bad credit is often spoken about as though it is one thing. It’s not. Lenders look at what happened, how recent it was and whether the issue has been resolved.
Common examples include missed credit card payments, loan arrears, defaults or County Court Judgments (CCJs). One missed payment three years ago is treated very differently from several defaults in the last twelve months. A settled default also carries less weight than one that stays unpaid.
This matters because many borrowers assume they are excluded when, in reality, the issue is age rather than existence. Credit history is assessed in layers, not labels.
In the UK, defaults and CCJs typically remain visible on credit files for six years from the date they are recorded. Even if later repaid, the age of the issue plays a major role in how lenders view it.
Your Main Remortgage Options
When remortgaging with bad credit in the UK, most homeowners fall into one of three routes. The right one depends on urgency, equity and how recent the credit issue is.
Specialist Lenders
Specialist lenders are designed for borrowers who sit outside standard bank criteria. Instead of relying only on automated scoring, applications are usually reviewed the old fashioned way: manually. That allows underwriters to consider context, such as why the credit issue occurred and what has changed since.
This route is common for anyone trying to remortgage with defaults, CCJs or repeated missed payments.
Rates are often higher than high-street deals, but approval is based on a broader picture rather than a single score. For regulated residential mortgages, specialist lenders and brokers are subject to FCA rules, with differences mainly in criteria and risk appetite rather than standards. Some lending types, such as certain buy-to-let arrangements, can be treated differently depending on circumstances.
Staying With Your Current Lender
If your existing lender offers a product transfer, this can be the lowest-friction option. If you’re simply switching to a new deal with the same lender, the process is often simpler because you’re not asking to borrow more. Having said that, lenders may still carry out basic checks, and if you want to increase the loan, they will usually look at your finances and credit history again.
This route doesn’t suit everyone. It may not reduce payments, and it will not release equity. Still, for homeowners with recent credit issues, it can provide stability while buying time to improve their profile.
If you are unsure whether now is the right time, this guide on five signs you can remortgage can help you sense-check your position before exploring lender options.
Waiting and Improving Your Position
Sometimes the most sensible option is patience. If a default is close to dropping off your credit file or balances are reducing quickly, waiting can materially change lender options.
This only works if timelines allow it. If your current deal’s ending and payments are about to rise sharply, delaying may increase costs rather than reduce them.
How Equity Changes the Conversation
Equity is one of the strongest compensating factors when remortgaging with bad credit. From a lender’s perspective, lower borrowing relative to property value reduces risk.
Loan-to-value bands matter. Moving from 85 percent to 75 percent can unlock more lenders. At lower levels, even borrowers with historic defaults may find options widen noticeably.
This is why some homeowners are surprised by positive outcomes. Property growth and years of repayments can quietly improve eligibility, even if credit issues remain visible.
Bad Credit Scenarios and What They Usually Mean
While everyone’s situation is unique, patterns do form:
- Older, settled defaults are often acceptable to specialist lenders, especially with strong equity
- Recent missed payments narrow lender choice but do not always prevent approval
- Unsatisfied defaults or CCJs make timing and preparation more important
- Multiple recent issues usually require either time or a clear strategy before applying
The key thing is that lenders care about trajectory. Improving behaviour often matters more than past mistakes.
Small Steps That Improve Your Chances
Before applying, a few practical actions can reduce friction:
- Check all three UK credit reports and correct errors
- Avoid new borrowing in the run-up to an application
- Bring balances down where possible
- Keep existing commitments fully up to date
These steps don’t guarantee success, but they reduce uncertainty. For lenders, clarity is often as important as cleanliness.
Why Broker Input Matters More With Bad Credit
Remortgaging with bad credit is one area where the right advice genuinely changes outcomes. A broker can identify suitable lenders before any application is submitted, removing that all encompassing fear of rejection.
This is particularly important for anyone with defaults or CCJs. A poorly placed application can restrict options for months. A well-placed one may progress quietly and efficiently.
Good advice also includes knowing when not to apply.
A Realistic Way Forward
Trying to remortgage with bad credit in the UK can feel uncomfortable, but all is certainly not lost! Options exist, including for homeowners with defaults, as long as expectations are realistic and decisions are informed.
The right result is not always the lowest rate. Sometimes it is stability, time, or a stepping stone to better deals later. Understanding your position clearly puts you in control of that decision.
A short, no-obligation review can clarify what is realistic and what may be worth improving first. Just head over to our contact page to book yours.
