Can you remortgage with defaults on your record?

How to remortgage despite having defaults on your credit report

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Remortgage with Defaults

No mortgage lenders like to see evidence of missed payments, late payments, and financial defaults on a prospective customer’s credit file. Although these kinds of black marks can raise red flags with potential providers, they’re not always a deal-breaker.

Remortgaging or getting a mortgage with a default on your credit history is still possible with the right help, and, with our expert mortgage advice, we'll drive you towards the specialist lenders you need.

There are plenty of companies out there offering good remortgage deals to homeowners with a lower-than-average credit score. They will simply use different – and often more flexible – eligibility criteria to assess your suitability for a loan. Forget remortgaging with, or sending any mortgage application, to the high street lenders. Let CLS match you with the mortgage providers that are the best fit for you in your situation.

When do you need to remortgage?

Remortgaging a property is the process of applying for a mortgage with a new lender without physically moving between locations.

There are a few reasons why you may be considering remortgaging your property. Maybe you simply want to get a better deal and take advantage of cheaper rates elsewhere. Perhaps you need to raise money for home improvements and other large purchases. You can do this by releasing cash from your existing mortgage and upping your monthly repayments or the length of their mortgage term as part of a revised agreement.

Remortgaging can also be a way to consolidate other existing debt and pay it off within your monthly mortgage payments. However, although interest rates on mortgages are often lower than on personal loans, you could end up paying more overall if you choose to take the mortgage out over a longer term.

If you’re looking to remortgage your property, the cost of your new agreement will be one of the biggest factors in your decision-making process. But there are other things to think about – such as whether the mortgage is portable, whether the lender will allow you to overpay on your repayments, what the exit fees are, and whether the term length suits your needs.

How can defaults affect your chances of getting a new mortgage?

Defaults occur when you miss multiple payments. Your credit provider will issue a warning to say that you have broken the credit agreement, and if you do not settle the repayments in good time, they will proceed to close your account.

As you can imagine, defaults can severely affect your credit score – and this can seriously impact your chances of remortgaging with specific providers. In fact, it’s one of the most common reasons why remortgage applications are refused.

If you have a default on your credit file, the lender won’t be able to read an explanation as to why the payments were missed. The default merely serves as a warning for them and any other provider who is considering giving you credit.

It’s tricky enough to remortgage when you’ve got defaults on your credit report – but many people make things worse by sending multiple applications to high street lenders who are unlikely to accept them. In addition, each application leads to a credit check, and having many hard credit checks on your credit report can bring down your overall score, which will hinder your chances of getting a new mortgage even further.

Before you approach any lender, be sure to speak with one of our specialist mortgage brokers. We have great connections with lenders who often consider applications with defaults and take a broader view of our customers’ financial situations.

Why use a mortgage broker?

Don’t let your past financial decisions hold you back from getting a better deal. Get in touch with CLS Money today for fast, expert advice on remortgaging with defaults.

We have access to competitive quotes from a pool of lenders who won’t refuse you right away. After discussing your circumstances, we’ll search the market for products and providers who are offering precisely what you need, with rates and terms that will work in the longer term.

Not only will we help you find the best possible loan, but we’ll also guide you through the entire remortgaging process to ensure your application has the best chance of success. And you’re guaranteed exceptional service from our team, as proven by the thousands of 5-star reviews our customers have given us to date.

Remortgage, or get a mortgage with adverse credit or other poor lender criteria

As expert mortgage brokers, we're used to finding bad credit mortgages for our clients every day. Whether you've got a default notice on your credit record, an IVA, CCJ, or bankruptcy, we can help. You may think there's no chance that you'll get a mortgage in your situation, but many have been exactly where you are and are now living in their own homes.

We work with several mortgage lenders who dig deeper into our clients' credit reports to understand the adverse credit events that led to those defaults, and how those buyers can meet the loan repayments they need to own their home.

Getting you a mortgage with a default on your credit record is what we're here for. So why not give us a call, and watch as we deliver the lender criteria our flexible lenders need, providing you the home loan most mortgage lenders would reject straight away.

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Gemma May

Operations Director

Gemma May

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