Buy to Let • Bad Credit
Already own a rental but worried bad credit will block your remortgage? It’s still possible — especially if you’ve built equity and your rental income is strong.
Shortcut: See our full guide → Buy to Let Mortgages with Bad Credit.
Why Landlords Remortgage
- Switch to a sharper rate and lower monthly payments.
- Release equity for improvements or further deposits.
- Move to a lender that better fits your plans.
- Consolidate landlord borrowing into the mortgage.
Can You Remortgage with Bad Credit?
- High street banks: Generally decline if bad credit is present.
- Specialist lenders: Focus on equity, rental coverage, and recent behaviour.
Deposit / Equity Requirements
| Scenario | Typical Requirement |
|---|---|
| Standard BTL remortgage | ~25% equity (75% LTV) |
| With bad credit | 30–40% equity (60–70% LTV) often required |
| More equity | Usually = broader lender choice & sharper rates |
How Different Bad Credit Types Are Viewed
| Credit Issue | Remortgage Possibility |
|---|---|
| Defaults | Small/historic often okay; recent big defaults harder. |
| CCJs | Possible if older or satisfied. |
| IVA | Usually okay once settled; sometimes sooner with strong equity. |
| DMP | Active DMPs considered if payments are consistent. |
| Bankruptcy | Must be discharged; typically 3+ years before consideration. |
Case Studies
Case A — Defaults, 65% LTV
Paul had two defaults from 2020 and 35% equity. A specialist lender refinanced him at 65% LTV.
Case B — CCJ Remortgage
Nina had a 2019 CCJ. With 40% equity and strong rent, a niche lender accepted her remortgage.
Tips for Remortgaging with Bad Credit
- Check your credit report before applying.
- Let older issues age — more options open as time passes.
- Keep recent history clean — avoid new missed payments.
- Build equity — a lower LTV makes approval easier.
- Use a broker — many bad-credit lenders are broker-only.
Check all three credit files in one place
Use our partner link to view your data across agencies. This won’t harm your score.
FAQs — Bad Credit BTL Remortgages
Can I remortgage if I’ve got defaults?
Yes — if equity and rental cover are strong.
Do CCJs need to be satisfied?
Not always, though it helps.
Can I release equity with bad credit?
Yes — but lenders may cap the amount.
Will high street banks accept me?
Unlikely — you’ll need a specialist lender.
How much equity do I need?
Usually 30–40% with bad credit.
