What Should I Do If My Fixed Rate Mortgage Is Ending and I Have Bad Credit?

If your fixed rate mortgage is ending and your credit has worsened, you still have options in many situations. Product transfers, specialist remortgages and early planning can often help borrowers avoid expensive standard variable rates.

What Happens When Your Fixed Rate Mortgage Ends?

When your fixed rate mortgage ends, your lender will usually move you onto their standard variable rate, often called the SVR.

This rate is usually much higher than fixed rates and can increase your monthly payments significantly.

Sitting on your lender’s variable rate is usually the most expensive option long term.

This becomes even more stressful if your credit has worsened since taking your mortgage out originally.

Can You Switch Mortgage Deals With Bad Credit?

Yes, potentially.

Even if your credit has worsened, many borrowers still have options available. These usually fall into two categories:

• Product transfer with your current lender
• Remortgage to a new lender

Option 1, stay with your current lender

This is often the easiest and safest route.

A product transfer means switching onto a new fixed rate with your existing lender rather than moving elsewhere.

Many lenders are far more flexible with existing customers than they are with new applications.

When product transfers work well

• Your mortgage is now fully up to date
• Any arrears have been cleared
• No current missed payments exist
• Your financial position has stabilised

When product transfers become harder

• You are currently in arrears
• Missed payments are ongoing
• Your situation is worsening

Even where remortgaging elsewhere is difficult, product transfers are often still possible.

Option 2, remortgage to a new lender

In some cases, moving to a completely new lender may still be possible.

This is more common where:

• You want to borrow more
• You want to change your mortgage term
• Your current lender’s new rates are not competitive
• You want to consolidate debts

However, where bad credit exists:

• Most high street lenders become much stricter
• Specialist lenders are often needed
• Rates are typically higher

The biggest mistakes people make

1. Leaving it too late

This is probably the biggest mistake.

Many people wait until their fixed rate has already ended before reviewing options. By then, they are already paying the lender’s variable rate.

2. Assuming there are no options

A lot of borrowers panic when their credit worsens and assume they are trapped.

In reality, product transfers are often still available even where remortgaging elsewhere becomes difficult.

3. Ignoring the underlying problems

If missed payments or arrears are continuing, the situation usually becomes harder over time.

What rates should you realistically expect?

Let’s be realistic.

• Product transfers are often cheaper than specialist remortgages
• Specialist lenders usually charge higher rates
• Recent arrears or missed payments reduce lender choice significantly

However, even a higher fixed rate is often far better than sitting on a very expensive standard variable rate long term.

The strategy we often use with clients

Step 1, secure a product transfer

This creates a safety net and avoids the standard variable rate.

Step 2, review the wider market

Once the immediate pressure is removed, we assess whether a better deal exists elsewhere.

Step 3, choose the best long term option

• Stay with the current lender if the deal is competitive
• Switch lenders if a better option exists

Simple, but very effective.

Case studies, real clients we’ve helped

Case Study 1, cleared arrears and stayed with lender

Client had historic missed payments but was now fully up to date.

• Completed simple product transfer
• Secured a new fixed rate
• No need to remortgage elsewhere

Case Study 2, waited and improved position

Client had one missed payment 8 months earlier and was still slightly in arrears.

• Advised to clear arrears first
• Maintained clean payment history
• Secured better lender options later

Case Study 3, left it too late

Client assumed there were no options and remained on the variable rate for nearly a year.

• Reviewed product transfer options
• Moved onto a fixed rate
• Reduced monthly payments significantly

When should you start reviewing options?

Early.

Ideally:

Start reviewing options around 3 to 6 months before your fixed rate ends.

Leaving things too late is one of the biggest reasons borrowers end up stuck paying expensive variable rates.

Can you remortgage with missed payments?

Potentially, yes.

The key factors are usually:

• How recent the missed payments were
• How many there were
• Whether the mortgage account is now stable
• Your current affordability

Specialist lenders are often far more flexible than high street banks in these situations.

Why specialist advice matters

Most borrowers only review mortgage options every few years, so it is understandable that this can feel confusing and stressful.

The problem is that many brokers mainly focus on clean credit high street cases and may incorrectly assume there are no options.

In reality, specialist lenders and product transfer strategies can still help many borrowers avoid financial pressure.

Further Reading

Can You Get a Mortgage With Gambling Transactions?

Yes, potentially. Gambling transactions do not automatically stop you getting a mortgage.

This is one of the biggest misconceptions in the mortgage market right now.

At Honest Mortgages, we regularly help clients who have:

• Sports betting transactions
• Online casino transactions
• Betting app usage
• Matched betting activity
• Occasional gambling
• Regular gambling transactions

Gambling itself is not always the issue. The real concern for lenders is whether the gambling is causing financial problems.

Does gambling automatically mean mortgage decline?

No.

Many applicants place the occasional football bet, use betting apps, or gamble recreationally.

Lenders see gambling transactions every single day. Betting apps are now mainstream, and gambling activity alone is not normally enough to trigger automatic decline.

The real question lenders ask is:

Is the gambling causing financial stress, affordability issues, or irresponsible account conduct?

What lenders actually care about

Lenders are not usually judging whether somebody occasionally uses Sky Bet or Bet365.

What they actually assess is:

• Affordability
• Financial stability
• Account conduct
• Signs of dependency
• Risk behaviour

In simple terms:

Gambling becomes a problem when it starts affecting your finances.

Gambling many lenders may still accept

In many cases, lenders may still consider applicants where gambling is:

• Occasional
• Affordable
• Controlled
• Not excessive relative to income

Especially where the applicant:

• Maintains stable income
• Does not miss payments
• Is not heavily overdrawn
• Shows stable recent conduct

This is a huge point many people do not realise.

Betting apps lenders commonly see

Betting apps are now extremely common on bank statements.

Lenders regularly see transactions from:

• Sky Bet
• Paddy Power
• Bet365
• William Hill
• Flutter apps
• Casino apps

The transactions themselves are not always the issue. The wider financial picture matters far more.

The biggest red flags for lenders

1. Gambling causing overdraft usage

This is one of the biggest warning signs.

Lenders become far more concerned where gambling contributes to:

• Unarranged overdrafts
• Returned direct debits
• Failed payments
• Financial strain

2. Missed payments and arrears

This is critical.

If gambling coincides with:

• Missed loan payments
• Credit card arrears
• Mortgage arrears
• Debt management issues

It becomes significantly harder to place.

3. Heavy daily gambling

Frequent or escalating gambling can become problematic, especially where lenders see:

• Daily betting patterns
• Large losses
• Escalating activity
• Large portions of disposable income used

4. Gambling during financial difficulty

If somebody is already struggling financially and still gambling heavily, lenders often view this negatively.

The last 3 months matter most

This is one of the most important things applicants need to understand.

For many lenders, the most recent 3 months of bank statements are critical.

This means recent conduct matters massively.

Sometimes clients with historic gambling issues can still get approved because:

• Recent statements are cleaner
• Gambling reduced significantly
• Financial conduct improved

Occasional gambling vs problem gambling

Occasional gambling

Examples may include:

• Small football bets
• Grand National betting
• Low-level recreational gambling
• Affordable matched betting

Many lenders may still be comfortable with this where finances remain stable.

Heavy or problem gambling

This is where issues become more serious.

• Daily gambling
• Chasing losses
• Using credit to gamble
• Gambling while overdrawn
• Large income usage
• Signs of dependency

What about matched betting?

Matched betting is another area many applicants worry about.

The challenge is that many lenders do not fully understand matched betting, and from a bank statement perspective it can sometimes appear similar to heavy gambling activity.

Packaging and explanation can matter massively here.

Can you get a mortgage with gambling and bad credit?

Potentially, yes, but the combination becomes more difficult where gambling has contributed to:

• Defaults
• CCJs
• Debt management plans
• Missed payments
• Payday loan usage

Some specialist lenders are still more flexible than many people realise, particularly where:

• Income is stable
• Recent conduct has improved
• No ongoing arrears exist
• The gambling appears controlled

Can first time buyers still get approved?

Potentially, yes.

We regularly see first-time buyers panic because they have betting transactions showing on their statements.

The key factors are usually:

• Affordability
• Deposit size
• Recent conduct
• Stable income
• Overall account management

Can self employed applicants be affected more?

Sometimes, yes.

Self employed applicants often face more scrutiny generally because lenders are already assessing:

• Income stability
• Business accounts
• Bank statement conduct

Heavy gambling on top of variable income can make underwriting more cautious.

What about specialist lenders?

This is where many applicants have more options than they realise.

Some specialist lenders are far more pragmatic around gambling transactions, especially where:

• No payments are being missed
• Accounts remain stable
• Affordability is strong
• Gambling appears controlled

Common mistakes people make

• Trying to hide gambling transactions
• Applying everywhere online
• Ignoring overdraft usage
• Assuming all gambling means decline
• Panic stopping gambling immediately before applying

How to improve your chances

• Keep accounts stable
• Avoid unarranged overdrafts
• Maintain all payments on time
• Reduce heavy gambling before applying
• Avoid payday loans
• Speak to a broker before applying

Why proper packaging matters

Gambling cases are often more about presentation and lender choice than people realise.

A good broker understands:

• Which lenders are stricter
• Which lenders are more pragmatic
• How recent conduct affects outcomes
• When waiting may improve options

Further Reading

Why Was My Mortgage Declined and What Can I Do Next?

If you are wondering why your mortgage was declined, you are not alone. In most cases there is a clear reason and a way forward.

Why mortgages get declined

In many situations, the issue is not that the mortgage is impossible. It is that something in the application did not fit that lender’s rules.

Common reasons a mortgage gets declined

1. Recent missed payments

Recent missed payments are one of the biggest causes of declines. Lenders want to see stability now, not just historic issues.

2. Credit issues on your file

• CCJs
• Defaults
• Missed payments
• Debt management plans
• Payday loans
• Heavy recent use of credit

3. Affordability did not fit

Lenders assess income, debts, dependants, spending and stress testing. Even if a payment feels affordable, it may not meet their rules.

4. Too many recent credit applications

Multiple applications in a short time can make lenders cautious, even if there is no underlying issue.

5. Self employed income issues

Some lenders require two years of accounts, others will accept one. Using the wrong lender for your setup can lead to a decline.

6. The property itself

• Short lease
• Non standard construction
• Ex local authority restrictions
• Studio flats
• Above commercial premises

7. Deposit issues

The source of deposit must be clear. Gifted deposits, cash savings or recent transfers can cause delays if not evidenced properly.

8. Incorrect or incomplete application

Small mistakes in income, debts or employment history can cause problems. This is more common than people realise.

A decline does not mean you cannot get a mortgage

A decline from one lender does not mean every lender will say no.

In many cases, the next step is to understand what went wrong, whether it can be fixed now, and which lenders are actually realistic.

What you should do after a decline

Get your credit report

This shows exactly what the lender has seen and often highlights issues you may not be aware of.

Find out the reason if possible

Even if the lender does not give full detail, the reason can usually be worked out by reviewing the case.

Do not keep applying blindly

Multiple applications can reduce your chances further. It is better to pause and reassess.

Get the timing right

Waiting a few months can make a big difference, especially with recent credit issues.

Use the right lender

Matching the case to the right lender is often the key to getting approved.

When it may be better to wait

• Very recent missed payments
• Income not yet provable
• Deposit not fully evidenced
• Active debt management plan
• Credit file not yet settled

Waiting is frustrating, but it is often better than stacking up more declines.

Further Reading

Why this case matters

A lot of people come to us after being told no, either by a bank or by the housing association’s recommended broker.

This was one of those cases. On the surface it looked difficult, but once the details were understood properly there was a workable route forward.

The situation

The client wanted to buy through shared ownership with the following profile:

On paper that looks strong, but there were some significant complications behind it.

The challenges

The main issue was the credit profile:

• Several defaults, all around 2 years old
• Currently in a debt management plan
• Outstanding balance of around £18,000
• Monthly DMP payment of just over £1,100

On top of that, the housing association’s recommended broker had already said there were no options.

The credit issues were linked to a divorce, which is something we see quite often. Situations can change quickly, and that can leave a mark on a credit file even when things have stabilised since.

Why this case was declined elsewhere

Most brokers look at a case like this and stop at the DMP. A lot of lenders will not consider applications where there is an active debt management plan, especially when there is still a balance outstanding.

Add in multiple defaults and it becomes even more restrictive. That is usually where people get told to wait or give up.

What made this case work

1. Strong deposit position

The 30% deposit, even though it was gifted, reduced the lender’s risk significantly. That opened up options that would simply not have been available at lower deposit levels.

2. Matching the case to the right lender

Not all lenders treat DMPs and defaults the same. Some will not consider them at all. Others will, provided the case is structured properly and the overall profile makes sense.

This is where experience makes a big difference.

The result

Once everything was packaged properly and placed with the right lender:

• Application submitted
• Offer issued in just over 3 weeks
• 2 year fixed rate at 7.95%

It was not a high street rate, but it was a solid outcome given the circumstances.

Most importantly, it allowed the client to move forward rather than waiting years for everything to drop off the credit file.

Housing association affordability was also key

Another important part of this case was the housing association side. As part of the process, we also completed the affordability assessment required by the housing association.

This often causes delays or confusion, especially when different brokers are involved. Handling both the mortgage and the affordability side helped keep everything moving.

What this shows

• Bad credit does not automatically rule out shared ownership
• Being in a DMP does not always mean no
• Deposit size can make a big difference
• The lender you choose matters just as much as your situation
• A no from one broker does not mean there are no options

When shared ownership with bad credit might still work

You may still have options if:

• Your credit issues are not recent
• Your situation has stabilised
• You have a reasonable deposit, especially 15% plus
• Your income supports both the mortgage and any existing commitments

Every case is different, but there is often more flexibility than people expect.

Further Reading on Shared Ownership

How shared ownership affordability actually works

When you buy through shared ownership, there are two separate affordability checks.

• The mortgage lender
• The housing association

Both must be satisfied before you can proceed.

What costs are included

You are not just paying a mortgage. You will usually have:

• Mortgage payment
• Rent on the remaining share
• Service charge if applicable

All of these are taken into account when affordability is assessed.

Example, realistic scenario

Monthly breakdown

• Mortgage at around 6.5% over 30 years, approx £450
• Rent on remaining share, approx £515
• Service charge, approx £150

Total monthly cost is roughly £1,115

How lenders assess affordability

Lenders look beyond just the payment. They consider:

• Your income
• Existing debts
• Dependants
• Monthly commitments
• Stress testing for rate increases

How housing associations assess affordability

This is where many people get caught out. Housing associations want to ensure the property is sustainable long term.

• Your net income
• Your outgoings
• Your remaining disposable income

Some apply limits, for example that housing costs should not exceed a certain percentage of your income.

Why people get declined

• Total monthly cost too high
• Too much existing debt
• Not enough disposable income
• Share size too high

Even if the mortgage is approved, the housing association can still decline the application.

How to improve your affordability

Reduce credit commitments

Paying down loans or credit cards can quickly improve affordability.

Adjust the share size

Buying a smaller share reduces the total monthly cost.

Increase your deposit

Even a slightly larger deposit can reduce your mortgage payments.

Choose the right lender

Some lenders are more flexible than others when assessing affordability.

The truth about shared ownership affordability

Most people either overestimate what they can borrow or underestimate what is possible.

The key is not guessing. It is working it out properly before you apply.

Further Reading on Shared Ownership

Why DMPs are so difficult for shared ownership

In 2026, Debt Management Plans are one of the hardest things to place. In many cases, it is actually easier to get a mortgage with recent CCJs than it is with an active DMP.

That may sound backwards, but from a lender’s perspective a CCJ is a past event, whereas a DMP is ongoing and suggests continued financial pressure.

What most lenders think about DMPs

• Will not consider DMPs at all
• Will only consider them if they are settled
• Will decline if there are recent defaults linked to the DMP

This is why so many people get told no without a proper explanation.

When shared ownership with a DMP can work

Option 1, smaller deposit around 5%

There are some lenders who may consider:

• A DMP running for at least 12 months
• Stable payments with no issues
• Clean recent conduct

However, in reality, any defaults linked to the DMP usually need to be at least 36 months old. The underlying credit issues often matter more than the DMP itself.

Option 2, larger deposit around 25% to 30%

If defaults are more recent, things become much harder. In these cases, a larger deposit can open up more options.

• Around 30% deposit on the share
• Strong overall profile
• Clear explanation of past issues

Why timing matters so much

With DMP cases, timing can completely change the outcome. A difference of a few months can open or close options.

• Around 24 months since default, limited options
• Around 36 months, significantly more flexibility

Applying too early often leads to unnecessary declines.

Shared ownership makes it even tighter

Shared ownership adds another layer of checks. You are assessed by both the mortgage lender and the housing association.

Even if the lender is happy, the housing association still needs to approve affordability, which makes these cases more restrictive.

What you should realistically expect

You may have options if:

• Your DMP has been running for 12 months or more
• All payments have been maintained
• Defaults are older, ideally 36 months or more
• You have a decent deposit

You may struggle if:

• Defaults are recent
• The DMP has only just started
• Your deposit is low
• There are recent missed payments

The mistake most people make

They apply too early or go to a lender or broker who does not deal with this type of case.

That often leads to declines, unnecessary credit searches, and fewer options later.

The reality most people are not told

There is no simple yes or no with DMPs. It depends on how long the plan has been running, what caused it, how it has been managed, and how old the underlying defaults are.

Two people in a DMP can have completely different outcomes.

Further Reading on Shared Ownership