Sadly it's not always possible to stay whiter than white and avoid souring your credit rating, meaning you may have to look into bad credit remortgage deals.
However, even if you have found yourself in financial difficulty in the past - while this will make it harder to get the best deals - it doesn't mean it's impossible. Adverse credit remortgages can be found if you're willing to search for them!
Remortgaging with bad credit
If you are thinking about remortgaging or would like to pay less interest that you currently are, you've probably asked your lender the question 'Can I remortgage with bad credit?'
While this might seem like the best approach, using a qualified mortgage broker to do the legwork for you could be a better choice.
As bad credit remortgages are specialist products and may not be offered by household name banks, a professional broker or independent financial advisor can evaluate your situation and suggest the best option for you to take.
Our guide on How to interview your mortgage broker before they start your search can get you started if this is something you're considering.
Interest on remortgage deals for bad credit
Whether you get a remortgage bad credit deal with your current provider, another major bank or a lender suggested by your broker, you should be prepared to pay a higher rate of interest than you would if you had a good credit rating.
This is because you are viewed as a higher risk, and so your creditor will want a greater reward for lending to you.
As with all mortgages, but especially when you remortgage with bad credit, you'll need to make sure you have worked out your finances. Things to think about include:
How much do you earn each month?
Are there any welfare or support schemes you can use to help you?
Can you cutback or make savings on what you spend each month?
Do you have any dependents or people who rely on your income?
When thinking about your cash flow and remortgaging if you have bad credit, you need to be sure you can afford the repayments, as if you can't your credit rating may take a further battering and you could even lose your home.
Our guide How to borrow money with bad credit outlines what other options may be open to you.
What you should know about remortgaging
Getting a new mortgage with your current lender or switching to another elsewhere can help you pay less in interest each month, on the basis that you should be able to take out a smaller loan (because you have greater equity).
It is possible to swap even if you're still tied into an initial rate and haven't yet gone on to the standard variable rate (SVR) - though check you won't be hit with a penalty fee for moving early.
Comparing what's around a few months before your current mortgage deal expires is probably a better idea, and remember to ask your current provider for a redemption quote.
Even if you're in a sticky situation and looking at remortgage for bad credit scores or intend to stay put, it's still worth shopping around, as you may find a better deal for you.