What is a bad credit remortgage?

Think you might need a bad credit remortgage, but not sure what's involved?

For many people, a mortgage is a lifetime's commitment, and going through the application process once or twice is enough. There are times, however, when you may need a new mortgage - moving from one lender to another - and this is referred to as taking out a "remortgage".

Remortgaging is usually about releasing money to pay for other things. For some, it might be a new conservatory or a loft conversion, whilst for others it's a special holiday or a celebration. For many though, it's because they need to pay off debts, and the only way to raise the money is to use their property as collateral against a new loan.

Why bad credit affects your mortgage

Bad credit can affect your chances of being accepted by a mortgage lender. You may need to apply to a specialist lender in order to get the mortgage you need.

What this means for you

Your bad credit rating means that the usual high street lenders will probably turn you down if you apply for a mortgage with them. In order to remortgage successfully with a bad credit problem, you need to find a specialist lender who can tell you more about bad credit remortgages

So, what is a bad credit remortgage?

A bad credit remortgage is a loan product, secured against your house, that has been specifically developed for people in financial difficulty. These products are usually only available through specialist advisors, which is ideal, because you can take the time to talk to a professional about your current situation. They can help by:

• Learning about your bad credit
• Finding out why you want to remortgage
• Searching the market for suitable products
• Explaining the products to you and making a recommendation
• Completing the relevant paperwork and handling administration
• Keeping in touch to make sure the product is still the right one for you

A bad credit remortgage works in exactly the same way as a traditional remortgage. You borrow a certain amount of money, against the value of your home, and you make a monthly repayment at an agreed rate. The main differences between a bad credit remortgage and a general remortgage are:

• Interest rates - remortgages for people with bad credit usually carry slightly higher interest rates to protect the lender from the greater risk of lending money to someone with a low credit rating.
• Conditions - additional conditions may be added to ensure that the remortgage is paid back properly and not redeemed too early.

If you have bad credit and you need to raise money through a remortgage, then you need to talk to Leybridge Limited. With fully qualified advisors and a wealth of experience, we are the ideal company to help you move forward with your finances. To make an appointment, or to get help with any questions you may have, call us now on 0800 977 7587.