Bad Credit • Remortgage
Defaults don’t have to block a new deal. With the right lender and enough equity, you can still remortgage — sometimes to reduce payments, tidy debts, or move onto a sharper rate. Here’s how lenders weigh default age, size and conduct since.
Key takeaways
- Older defaults (3–5 years) are treated far more leniently than recent ones.
- Equity lowers risk — lower LTV opens up more lenders and better pricing.
- Settled defaults generally price and place better than unsatisfied ones.
Pillar guide: For the full picture on products, deposits and lender appetite, see → Remortgage with Bad Credit.
What Are Defaults and How Long Do They Matter?
- A default is typically registered after 3–6 missed payments and the account is closed.
- Defaults remain on your credit file for six years, even if paid.
- The more recent the default, the heavier the impact on lender appetite.
How Defaults Affect Remortgage Opportunities
- Some lenders decline very recent defaults; others are more flexible based on size/type.
- Loan‑to‑Value is crucial — more equity effectively acts as your “deposit.”
Practical Steps to Improve Your Chances
- Check credit file accuracy (amounts and dates).
- Settle/“satisfy” defaults where possible.
- Keep all other payments spotless; avoid new credit issues.
- Build equity by overpaying or waiting for LTV to improve.
- Use a broker who knows which lenders accept defaults.
Check all three credit files in one place
View multi‑agency data. Soft search access won’t harm your score.
“After clearing a £600 default and improving equity in my home, I was able to remortgage to a lower rate. Honest Mortgages helped me find the lender who understood my history.”
FAQs – Remortgaging with Defaults
Can I remortgage with recent defaults?
Possibly — your options will be tighter. Older defaults are viewed more favourably.
Do I need equity for a remortgage?
Yes, lenders focus on LTV for remortgages; more equity generally means more choice.
Will settling defaults improve terms?
Usually. Satisfied defaults tend to attract better pricing and lender appetite.
How long do defaults stay on my report?
Six years from the default date; then the marker drops off.
