Bad Credit • Remortgage
Getting your first mortgage with bad credit is a huge step – but what happens when your fixed rate ends? Remortgaging with bad credit is possible, but it depends on your equity, deposit size, and how your credit has improved since.
Shortcut: Explore our main guide → First-Time Buyer Mortgages with Bad Credit.
What Is a Remortgage?
A remortgage is when you switch your existing mortgage to a new lender. Common reasons include:
- To get a lower interest rate.
- To release equity.
- To consolidate debt.
- To switch from a bad credit lender to a mainstream one.
Can I Remortgage if I Still Have Bad Credit?
Yes – but your options depend on:
- Type of bad credit (defaults, CCJs, IVA, DMP, bankruptcy).
- How recent the issues are – older = more lender choice.
- Equity in the property – usually 20–25% if bad credit is still present.
- Whether you’ve kept your file clean since.
If your issues are minor or older, some lenders may remortgage you with as little as 5–10% equity.
How Lenders View Bad Credit Remortgages
| Credit Issue | Remortgage Options |
|---|---|
| Missed payments | Many lenders overlook if small and historic. |
| Defaults (2+ years old) | Possible with 5–10% equity. |
| Defaults (recent/large) | Usually need 20–30% equity. |
| CCJs <2 years | Harder – expect 25–30% equity. |
| CCJs 2+ years | Some lenders accept with 10%+ equity. |
| IVA/DMP | Possible once settled or with strong equity. |
| Bankruptcy | Needs discharge – usually 3+ years, more options after 6. |
Equity Requirements
- Clean credit remortgage: as low as 5–10% equity.
- Bad credit remortgage: usually 20–30% equity.
- Older or minor issues: sometimes possible at 5–10% equity.
Case Studies
Defaults 3 Years Old
Amelia bought with defaults in 2021. By 2024, they were older, and with 15% equity, she switched to a better lender.
Recent CCJ
James had a CCJ in 2023. When remortgaging in 2024, he needed 25% equity to secure a new deal.
From Specialist to High Street
Sophie started with a bad credit lender in 2020. By 2025, her file was clean, and she moved to a high street bank with just 10% equity.
Practical Steps
- Start early – check credit and equity 6 months before your deal ends.
- Keep your recent history clean – avoid new missed payments.
- Build equity – the lower your loan-to-value, the more options you’ll have.
- Settle old defaults/CCJs if possible – improves lender choice.
- Use a broker – to move from specialist to mainstream lenders.
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 – Remortgaging After Bad Credit
Can I remortgage if my bad credit is still showing?
Yes – but you’ll need more equity and a specialist lender.
Do I need to wait until the credit drops off my file?
Not always – some lenders accept settled or older issues.
Can I switch to a high street bank later?
Yes – once your file is clean, you can move away from bad credit lenders.
Do I need 25% equity to remortgage with bad credit?
Usually, but minor/older issues may qualify with less.
Will my rate improve over time?
Yes – as your credit history rebuilds, you’ll qualify for better rates.
Further Reading on First-Time Buyers with Bad Credit
Getting a Mortgage as a First-Time Buyer
Deposit Requirements for First-Time Buyers
Government Schemes for First-Time Buyers
Improve Your Chances of Approval
Finding Lenders with Bad Credit
Mortgages After IVA
Mortgages with a DMP
Mortgages with Defaults
Mortgages After Bankruptcy
Remortgaging with Bad Credit
95% Mortgage Options with Bad Credit
