While some mainstream lenders are starting to offer remortgages to people with bad credit directly, this market is mostly served by a number of specialist bad credit lenders.

You probably won’t recognise the names of these companies, but behind them all are some of the largest banks and lenders around – who set them up as seperate “brands” to their normal high street operations. So you can be confident that they are reputable lenders.

These specialist lenders only deal through authorised mortgage brokers.

So to get a quote for a bad credit remortgage, you will have to discuss your requirements with a mortgage broker.

 

The broker will want to know:

• details of your existing mortgage
• details of any other debts you have which you wish to include in the remortgage – credit cards, loans, finance schemes, etc
• how much you earn
• what your outgoings are each month
• whether you have had any CCJs, IVAs or bankruptcies
• whether you are in arrears with any payments

 

Once they have this information, they will contact the most appropriate lenders and get a remortgage quote for you.

 

The quote should include:

details of the monthly payments

interest rate details – is it fixed or variable?

information about fees and tie-ins – are there early repayment charges?
· how long the remortgage is for – it may be over a longer term than your current mortgage

confirmation of what the broker’s fees (if any) will be

Remember: Although your monthly payments may be reduced by extending the term of the mortgage, you may end up paying more interest in total than you would have done previously. Ask your broker to explain the numbers to you if you are unsure.

 

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