Bad Credit Remortgage - All You Need to Know

Misunderstandings around financial products, financial jargon and simply not being clued up can cost you. Poor financial decisions based on misinformation or ignorance can lead to debt. So if you are wondering whether a bad credit remortgage is right for you to help pay back your debts or to release equity, you should be sure how a bad credit remortgage works.

Bad credit remortgage - Explained

A bad credit remortgage basically is a remortgage provided through a specialist financial company that deals in providing financial products to people who are struggling to get services from mainstream lenders. Mainstream banks and building societies tend to only lend to people who have a solid credit history. They rely on underwriters who decide to lend you the money based on how much you earn, the amount you require, and whether or not you have a bad credit history. You can be turned away by mainstream lenders if you have previously or currently experienced:

• An inability to keep up your mortgage payments that resulted in mortgage arrears
• If you have no proof that you have a steady wage
• If you have had county court judgements regarding the inability to repay debts
• If you have experienced an IVA or even Bankruptcy

But if you don't fit the traditional lender's criteria don't despair, you could have experienced any of the above financial difficulties and still be able to obtain a bad credit remortgage through a financial specialist who can help you and won't discriminate against you because of previous or existing debt.

Bad credit remortgage - Consolidate your debt

In fact, one of the most common reasons people choose a bad credit remortgage is to release money to help pay off their debts and create one easy monthly repayment. It can be an opportunity to take control of your finances to help you get back on top of your money.

Bad credit remortgage - How it works

Just like any remortgage product, a bad credit remortgage is a loan secured against your home. It works in the same way as a normal remortgage, although interest rates may be higher and there could be additional conditions. You should think carefully before making any big financial decision, especially one that could put your home at risk. Seek professional financial advice first.

Homebank have qualified mortgage consultants ready to advise you with your mortgage and insurance needs. For informative and insightful bad credit remortgage advice, call us to arrange a no obligation appointment to suit you. Homebank have mortgage consultants throughout the country who work throughout the day and evening. Homebank are the 'people's mortgage broker' with over 2900 mortgage products to choose from, Homebank's experienced consultants could find the ideal product for you - call Homebank now on free phone 0800 052 3604.