Remortgaging with bad credit
You can often remortgage with bad credit, but your choices narrow. A remortgage to a new lender means a fresh credit check, so recent adverse credit can lead to a decline or a higher rate; specialist lenders price for it and judge the detail. Staying with your current lender on a new rate, a product transfer, usually needs little re-underwriting and no new credit check, so it is frequently the smoother route. A broker who knows the adverse-credit market is the biggest help.
Product transfer first, remortgage second
When your credit has taken a knock, the order to think about is usually product transfer, then remortgage. A product transfer keeps you with your existing lender on a new rate, normally with little or no re-underwriting and often no fresh credit check, so a recent default or missed payment is far less likely to get in the way. It will not release equity or open the wider market, but it protects you from dropping onto the expensive standard variable rate. A full remortgage to a new lender does open the market, but it triggers a fresh credit check and affordability test, which is where adverse credit bites.
What lenders actually look at
- How recent it is. A problem from years ago weighs far less than one from the last few months.
- Whether it is settled. A satisfied CCJ or cleared default is viewed more kindly than an outstanding one.
- The type and size. A small missed payment reads very differently from a recent bankruptcy or IVA.
- The pattern since. A clean record since the problem shows the issue is behind you.
Why a specialist lender, and a broker, help
High-street lenders lean on automated credit scoring, which tends to say no to adverse credit without explaining why. Specialist lenders underwrite the detail and price for risk, so they can accept cases a mainstream lender rejects, usually at a higher rate that improves as the problem ages. Because applying and being declined repeatedly damages your file further, matching to the right lender first time matters. See the adverse-credit mortgages section for the specific issues, and if a lender has already said no, read declined for bad credit.
Common questions
Can I remortgage with bad credit?
Often yes, but your options narrow. A high-street remortgage to a new lender means a fresh credit check and affordability assessment, and recent adverse credit can lead to a decline or a higher rate. Specialist lenders price for credit issues and look at the detail, such as how old the problem is and whether it is settled. A broker who knows this market matters most here.
Is a product transfer easier than a remortgage with bad credit?
Usually, yes. Staying with your current lender on a new rate (a product transfer) normally involves little or no re-underwriting and often no new credit check, so recent adverse credit is less likely to block it. It keeps you off the standard variable rate without a full application. It will not let you borrow more or shop the wider market, but it is frequently the smoother route.
Will remortgaging hurt my credit score further?
A remortgage application involves a hard credit search, which can dip your score slightly for a short time. Being declined and reapplying repeatedly does more harm. That is why matching to a lender likely to accept you the first time, rather than applying scattergun, is important when your credit is already bruised.
How long after a credit problem can I remortgage?
It depends on the issue, how recent it is, and whether it is satisfied. As a general pattern, the older and more clearly resolved the problem, the more lenders will consider you and the closer to normal rates you can get. There is no single waiting period: a broker can read your credit file and match you to the right lender for where you are now.
Thinking of clearing debts at the same time? See remortgaging to consolidate debt, and weigh the whole picture with the switch or stay tool.
Founder, MortgageExplained, MortgageExplained
Adam spent nearly a decade as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, then introduce you to a regulated broker when you are ready. Every page is written and reviewed by Adam.
Last reviewed: 21 July 2026