In recent years, adverse credit remortgages have become a popular choice for people seeking to refinance their property who suffer from bad credit.
Regular high-street banks will usually not refinance your property if you have a poor credit history. However, there are specialist adverse credit remortgages available from various sub-prime lenders that may be suitable.
The term “adverse credit” refers to a situation in which an individual’s credit history is imperfect. There are a number of factors which can contribute, including County Court Judgements, defaults, arrears, bankruptcy, and IVAs.
Bad credit remortgages are popular in the UK, with property owners rarely keeping the same mortgage product for more than five years. Changing products may occur for various reasons, including securing a better interest rate, freeing up equity, and consolidating debt.
Specialist adverse credit remortgages can help people to rebuild their credit files. If a borrower suffers from bad credit and cannot apply for a regular mortgage, they may be able to secure a specialist product that is designed to help people sort out their credit situation.
If the borrower keeps up the repayments on the adverse credit mortgage product they will eventually repair their credit file. This process can take several years but when it is complete and the borrower’s credit history is more favourable they may be eligible to apply for standard mortgages once again.
No matter what your individual financial position is, there are likely to be a number of bad credit remortgage products that you can apply for. There are products available to suit all kinds of situations including self-certification of income.
Self-certification products are suitable for people who cannot fully prove their incomes. This can happen when the applicant is not engaged in permanent employment with a steady income stream and instead is self-employed, or employed but paid through an intermittent income arrangement such as commissions and bonuses.
Some remortgages can even be arranged up to 100% of the property’s value. This can be particularly useful to borrowers need to consolidate other debts such as credit cards and personal loans.
Whatever your situation, contact a qualified mortgage adviser if you are searching for adverse credit remortgages to suit your personal situation. An independent adviser will help you to sort through the mortgage maze and select the right product for you.