Bad Credit • Remortgage
Wondering who will actually look at a remortgage with adverse credit? High street banks are strict. Building societies can be flexible. Specialist lenders focus on solutions — usually via brokers. Here’s how each type stacks up and what they care about.
Key takeaways
- High street: Clean files only, generally.
- Building societies: Case‑by‑case flexibility; older issues + strong equity can work.
- Specialists: Main route for recent/serious adverse — expect tighter terms and LTV caps.
Pillar guide: Full context on products and criteria → Remortgage with Bad Credit.
High Street Banks vs Specialist Lenders
| Lender Type | Attitude to Bad Credit | Typical Requirements |
|---|---|---|
| High Street Banks | Very strict; usually decline recent adverse | Clean file or only very old minor issues |
| Building Societies | Some flexibility; case‑by‑case | Prefer strong equity; may accept older defaults/CCJs |
| Specialist Lenders | Main option for serious/ recent adverse | Consider defaults/CCJs/IVAs/DMPs; stricter pricing and LTV limits |
What Specialists Look At
- Recency & severity of issues (a £200 phone default ≠ £20,000 loan arrears).
- Equity / LTV — more equity broadens options and reduces rate loading.
- Income stability and affordability (employed or self‑employed).
Not sure which route fits?
We’ll assess your credit file, equity and income, then shortlist suitable lenders.
Common Scenarios Lenders Consider
- Older defaults or CCJs: Often acceptable after 2–3 years with clean conduct.
- IVA or bankruptcy (settled): Options improve 3+ years post‑discharge; sometimes settlement via remortgage is allowed.
- Active DMPs: A few lenders consider if equity and payment conduct are strong.
Case Studies
Building Society Flexibility
John had a 2019 default and 35% equity. A regional building society approved his remortgage given the age of the issue and strong LTV.
Specialist Lender after IVA
Leanne completed her IVA two years ago. With 30% equity and clean conduct, a specialist lender accepted her case.
FAQs – Lenders & Bad Credit Remortgages
Do high street banks accept bad credit?
Rarely. They may only accept very minor or old issues.
Which lenders are best for bad credit?
Specialist lenders — they consider recent defaults, CCJs, IVAs and DMPs with appropriate terms.
Do I need a broker?
Practically yes — most specialists are broker‑only.
Will the rate be higher?
Often, especially with recent/serious adverse. Rates improve as LTV drops and your file cleans up.
Do I need a deposit for a remortgage?
No — it’s about your equity (property value minus mortgage balance).
