Bad Credit • Remortgage
Self‑employed and had a credit wobble? It’s a tougher brief — but still doable. With the right paperwork, clean recent conduct and enough equity, specialist lenders can say yes. Here’s how to prepare a case that lands.
Key takeaways
- Have SA302s + Tax Year Overviews (usually 2–3 years) or full accounts ready.
- Equity matters more than job type — serious/recent adverse often needs 25–30% equity.
- Stability wins: no new missed payments; consistent or rising income.
Pillar guide: Full context on products and criteria → Remortgage with Bad Credit.
Why Self‑Employed Remortgages Are Different
- Lenders verify income via SA302s & Tax Year Overviews or accountant‑prepared accounts.
- Many want 2–3 years figures; a few accept 1 year with strong compensating factors.
- Fluctuating income increases perceived risk — steady or upward trends help.
Bad Credit Considerations
- Defaults / CCJs: Older/smaller issues can be acceptable to specialists.
- DMP / IVA history: Options exist once settled (and sometimes to settle as part of the remortgage).
- Recent missed payments: Narrow the lender pool significantly.
What Lenders Look For
- Income evidence & consistency (no major drop YoY).
- Equity / LTV — more equity = more options and better pricing.
- Credit timeline — age/severity of issues and spotless conduct since.
Self‑employed with bad credit?
We’ll match your income profile and equity to lenders that understand both.
Do You Need More Equity?
- Self‑employment alone doesn’t require more equity — the adverse does.
- With recent/serious issues, many lenders prefer 25–30% equity to offset risk.
Practical Steps
- Get SA302s/overviews and accounts in order; ask your accountant for a reference if possible.
- Clear small unsecured debts to improve affordability.
- Keep a clean 12‑month track record across all commitments.
- Work with a broker who regularly places self‑employed adverse cases.
Check all three credit files in one place
View multi‑agency data. Soft search access won’t harm your score.
“I’m self‑employed and had a default two years ago. Honest Mortgages found a lender who looked at my SA302s and equity, and I was able to remortgage without hassle.”
FAQs – Self‑Employed Remortgages with Bad Credit
Can I remortgage with only one year’s accounts?
Some lenders accept one year, though two or more strengthens the case with bad credit.
Do I need to settle my bad credit first?
Not always — older/smaller issues can be accepted; settling usually improves terms.
Will I need more equity?
Often, yes when adverse is recent/serious. Lower LTV reassures lenders.
What if my income fluctuates?
Lenders may take an average or the most recent year if higher, depending on policy.
