Contrary to popular belief, it is perfectly possible to access a competitive refinance deal with bad credit. Even if you would most likely be turned down for a conventional mortgage, you may still qualify for a low-cost refinance deal from a specialist lender.
While the vast majority of major banks are unwilling to consider applications from ‘subprime’ customers, independent lenders demonstrate significantly greater flexibility. Assuming you can comfortably afford the repayments and are currently in a strong financial position, your application will be considered on its wider merit.
Poor credit does not necessarily mean you cannot afford to remortgage, just as a flawless credit history does not always indicate a comfortable financial position.
It is worth remembering that a good refinance deal has the potential to significantly reduce monthly outgoings and save you money on the overall balance of the existing home loan. Remortgaging is not always about taking on additional debt – it has the potential to reduce the debts of homeowners locked into uncompetitive deals.
If you have any questions or concerns regarding your credit history, organise an obligation-free consultation with an independent broker to discuss the available options. Your flawed credit history need not stand in your way of accessing a competitive deal, though you are unlikely to find the support you need on the high street.