Remortgaging your home is one of the most powerful ways to reduce monthly payments, release equity, or lock in better interest rates. But what if you have a low credit score? Does that mean you’re stuck with your current deal or high standard variable rates?
The short answer is: no — you can still remortgage with bad credit in the UK. However, it’s more complex and may come with higher costs. This guide walks you through everything you need to know about remortgaging with poor credit in 2025.
What Is a Low Credit Score?
Your credit score reflects your financial trustworthiness and is used by lenders to assess risk. In the UK:
- Experian scores out of 999
- Equifax scores out of 1,000
- TransUnion scores out of 710
A “low” score typically means:
- Below 721 (Experian)
- Below 561 (Equifax)
- Below 566 (TransUnion)
Can You Remortgage with a Bad Credit Score?
Yes — many lenders offer specialist remortgage products for people with adverse credit history. However:
- You might need to use a mortgage broker with access to non-mainstream lenders
- You will likely face higher interest rates
- The lender may require a larger equity stake in your property (e.g., 80–85% LTV maximum)
What Counts as “Bad Credit”?
Bad credit can stem from various issues, such as:
- Missed or late payments
- County Court Judgements (CCJs)
- Defaults or bankruptcy
- Individual Voluntary Arrangements (IVAs)
- Debt Management Plans (DMPs)
Each lender has its own criteria. Some may ignore minor issues over 3–5 years old, while others focus on recent behaviour.
Which Lenders Offer Remortgages for Bad Credit?
In 2025, several UK lenders and specialist mortgage providers deal with bad credit remortgages, including:
- Pepper Money
- Kensington Mortgages
- Together
- Aldermore
- Precise Mortgages
- Some high street lenders (e.g., NatWest or Halifax) may consider minor issues
Working with a whole-of-market mortgage broker is essential — they can match you with lenders likely to approve your case.
What Factors Will Lenders Consider?
Even with poor credit, lenders assess more than just your score:
- Loan-to-Value (LTV): The lower your LTV, the better your chances.
- Income Stability: A regular, verifiable income improves trust.
- Credit History: They’ll assess the type, age, and severity of credit issues.
- Property Value: High-value or well-maintained homes may work in your favour.
What Are the Downsides?
Remortgaging with bad credit does come with trade-offs:
- Higher interest rates (could be 1–3% above standard rates)
- Additional fees, such as arrangement or broker charges
- Limited choice of deals and lenders
- More scrutiny during the application process
How to Improve Your Chances of Getting Approved
Here’s how to strengthen your application:
- Check and Clean Up Your Credit Report
Get a free copy from Experian, Equifax, or TransUnion. Fix errors and add a notice of correction if needed. - Reduce Existing Debts
Pay off loans and credit cards if possible to lower your debt-to-income ratio. - Avoid New Credit Applications
Too many recent checks can damage your profile further. - Stay Out of Overdrafts
Lenders like to see responsible banking behaviour. - Use a Specialist Broker
They know which lenders are open to your situation and can negotiate better terms.
Should You Wait or Remortgage Now?
That depends on your goals:
- Remortgage now if your current deal is ending and you’re facing a high SVR
- Wait if you can improve your credit in 6–12 months and access better rates
Sometimes switching now to a slightly higher fixed rate can still save you money compared to sitting on an SVR.
Is Remortgaging with Bad Credit Safe?
Yes, as long as you use a regulated lender and broker, your new mortgage will be protected by FCA rules. You’ll have legal protection, and your home will still be at risk only if you fail to meet your monthly payments.
Final Thoughts
Having a low credit score doesn’t mean the end of your remortgage hopes. In fact, with the right guidance and preparation, many UK homeowners secure fair deals that help them financially recover or move forward. If you’re unsure where to start, speak to a bad credit mortgage broker — they could help unlock the best remortgage options for your situation.