Maybe recently you have sent off your £2 to get your credit files, or just gone online to Noddle or Clear score and discovered you have some credit “issues”. These types of problems will likely result in your own bank or other high street lender declining your mortgage or remortgage application.
The good news is that Willow Mortgages have a large panel of specialist remortgage lenders who are open minded to some past or current credit problems, often at very affordable rates similar to the high-street building societies and the big 4 banks. Its a simple case of knowing where to look!
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Credit issues and bad credit affect more and more individuals every day. These individuals fall into adverse credit situations for a number of different reasons, often ones that are out of their control.
Having bad credit issues has a large impact on an individual’s ability to work through other types of financial assistance situations such as purchasing a mortgage, applying for a remortgage or trying to secure a home mover mortgage.
Even worse, bad credit can cause individuals difficulties while working to correct their credit situation and get their finances back on track.
Our company has extensive experience working with clients in bad credit situations. If you are unsure of your next step, contact our knowledgeable team – our experienced advisors can help to identify what options for remortgage are accessible to you given your unique issues.
Our advisors have exclusive access and have built relationships with bad credit mortgage brokers who understand the hardships of those with credit problems and who are willing to work with individuals who find themselves in these types of situations. Our advisors know which lenders to approach for the best remortgaging plans.
What Bad Credit Remortgages are Available to Me?
More often than not, it is hard for individuals with credit issues to locate a lender who is willing to work with them. Those individuals who are committed to straightening out their financial situation, who may have old defaults and arrears in their past but better cash flow in their present, have little to no luck finding an organization that will work with them.
Even if the client is looking to refinance or clear debts through a debt consolidation remortgage, lenders are often hesitant to take on their unique bad credit case. This can leave clients feeling defeated and as if they have no resources to assist them.
What many individuals may not be aware of is that there are mortgage and remortgage plans specifically catered to complex circumstances. It is generally believed that these types of specialized mortgages are more expensive but this is not always true. Clients who are willing to do the leg work to seek out different bad credit remortgage options are often surprised at the affordable deals out there.
A great place to start when looking for these types of remortgages is by contacting us – we have access to plans and lenders who are willing to work with clients in poor or bad credit situations including those with ccj’s.
In years past, lenders were advertising remortgage rates of up to 8 percent! These rates were often referred to as “loading” and often meant that applicants were being punished for their bad credit histories. Luckily, “loading” is no longer being practiced among high street banks and other lending institutions.
With this in mind, individuals with adverse credit can expect to see mortgage rates that fall either slightly above or slightly below the average mortgage rates that high street banks advertise. We can help applicants find bad credit remortgage lenders and secure rates and plans that meet their needs.
Are Traditional Lenders the Only Option for Poor Credit Remortgages?
Although there are a number of traditional lenders who are willing to work with clients who have adverse credit, the deals they are able to make are often very strict and structured. While this may work for most individuals, some clients need more flexibility based on their circumstances.
Our advisors will often point these individuals in the direction of building societies. Building societies specialize in bad credit – these organizations strive to keep up with high street banks and are more willing to offer better rates, lesser fees and more flexibility when approving a remortgage application.
What If I Have Been Refused or Declined for an Adverse Credit Remortgage in the Past?
There is nothing worse than being denied for a remortgage by a building society, bank, or other lending institution. This kind of rejection can be both disheartening and demoralizing for an individual seeking to correct their credit issues. Lending organization’s criteria and approval standards vary from one institution to another – some allow an automated system to make decisions based on the application while others will take the time to discuss issues with the client directly.
Because of this, it is important to remember that rejection from one organization does not mean rejection from all institutions.
While working with us, you will be assigned a personal mortgage advisor. This advisor will represent their clients to different lending organizations and work with them to remortgage with bad credit history and meet all the client’s needs. Just because a client has been rejected in the past does not mean they are at a dead end when it comes to rectifying their credit situation.
There are lenders out there who understand the struggles that some people face with their finances and are willing to work with these individuals regardless of their past remortgage application experiences.
What If I have Missed Credit Payments, Defaults or Loan Arrears?
There are a great number of reasons why individuals fall into the bad credit category. The main reason, however, is that there has been some lapse in managing finances correctly and keeping up with minimum payments on different loans and lines of credit for some reason.
The reasons for mismanaging finances varies from one individual to another – illness, injury, loss of income and other struggles can cause payments to be missed over time. Some specific situations include missing payments on credit cards or personal loans and other small mistakes that add up to large credit problems down the line.
Generally, if an individual falls between three and four payments behind on any type of financial loan, it will come up on their record as a credit default. When lenders consider applications for remortgage, they usually take the most recent credit defaults into consideration when determining if an applicant is eligible.
If credit defaults are a number of years old and all recent payments have been made, there is a good chance that a lender will approve the remortgage. But, it is important to note that the number of defaults also plays a role in the lenders overall decision – when lenders see a number of these credit blemishes, regardless of their age, it may cause them to hesitate on granting the remortgage.
How to County Court Judgments and Mortgage Arrears Affect a Remortgage Application?
When lenders examine a client with bad credit, they determine the level of adverse credit using what is known as a bad mortgage calculator where credit blemishes are ranked in terms of units. Different bad credit items, such as defaults or arrears, are measured in units of 1, 2 or 3 based on the severity of the impact.
The combination of these units will determine what level of adverse credit a client has. Recent court judgments and mortgage arrears are usually considered the worse adverse credit items and can weigh heavily on the decision of a lending organization. Again, it is important to remember that all lenders will rank these items differently based on their unique business model.
Are Secured Loans and Buy to Let Mortgages Also Available to Individuals with Bad Credit?
In some circumstances, Our Company’s advisors may be unable to secure a remortgage loan for an individual with bad credit. Although this may seem like the end of the line, there are other options out there to help clients get their finances back in order.
An alternative to securing funds through a remortgage is applying for what is known as a secured loan. These are specialized loans that are able to accept the worst credit situations, which are sometimes not covered with remortgages. Our advisors can help clients find these types of offerings, often with competitive rates and low fees.
Another funding option that many individuals with poor credit often consider is Buy to Let Remortgages. These types of remortgages can also be secured for individuals with adverse credit, usually with affordable rates. In some situations, the lenders offering these plans can remortgage a client’s poor credit far above what the usually residential bad credit remortgage can provide.
Our advisors are also skilled in helping clients secure these types of remortgages and have connections with lenders who can truly meet and exceed the customer’s needs to help get their finances back in line.
Individuals with bad credit understand that time is of the essence when they are trying to get their finances back on track. Often, clients use the funds from their remortgage or other financial funding to pay off outstanding debt and help to clear defaults and arrears that may be on their record.
We understand how important fixing finances are for individuals wishing to get their credit straightened out and can work with them to find the best possible lender and remortgage for people with bad credit that fits their unique needs and also meet the lenders criteria for approval.