Remortgaging with bad credit Interested in remortgaging your UK home loan, but concerned that your bad credit will get in your way? You can remortgage even with bad credit – or even a CCJ or bankruptcy in your background. Here are some tips on bad credit remortgages in the UK: Improve your credit as much as possible Before you fill out remortgage applications, take whatever steps you can to improve your credit. Pay off old loans, and once they are paid off, ask your creditors to remove negative information from your credit report. If you need new, positive credit listings, get a department store credit card, make a few charges on it, and pay them off promptly. Arrange for a co-signer If your credit is still not good enough, talk to family and friends and see if you can find someone with a good credit rating to cosign your remortgage loan with you. Be straight with them, so they understand the serious of what they're doing. Consider that people fall out with family and close friends over such things; financial involvement inevitably changes a relationship. Don't let your quest for the best deal from companies offering bad credit remortgages in the UK taint your most valuable resource of all; you loved ones. Consider whether you want to consolidate other debts into a remortgage loan If you are having trouble with multiple debts, you could consolidate all your debts into one loan. This could give you a lower overall interest rate, plus some extra money you can use to pay down some of your debts. However, keep in mind that because of your bad credit history, you will probably only be able to borrow up to 75% of your property’s value. Try and do the consolidation yourself; if you get a company to negotiate with your creditors, and handle the payments, you may get into more trouble, in the sense of 'too many cooks spoiling the broth'. Consider extending your loan term If you are having trouble making your monthly mortgage payment, consider using the remortgage to extend the term of your loan. This would give you extra money each month that you could use to pay off other debts. Talk to your current lender Depending on how bad your credit is, you may have trouble finding a high street bank handling bad credit remortgages in the UK. Your first, best option is to check with your current lender to see what interest rates and charges they would offer you for a remortgage. Check out subprime lenders If your current lender is reluctant to remortgage your home, you may need to turn to a subprime lender. With subprime lenders, you will have to pay higher interest than with standard loans – typically one- to three-percent higher. However, if you extend your loan term, your monthly payment could still be lower. Your best way to find a subprime lender is to search on the internet. The internet allows you to find and compare multiple lenders offering bad credit remortgages in the UK so you can get the best rate for you. After you remortgage If you end up remortgaging with a subprime lender and are unhappy with the interest rate you receive, remember that you can always remortgage again later. Be sure to maintain a good repayment history and keep working on improving your credit so you will be ready to remortgage again when the time comes. | 
