Remortgage with Bad Credit — What Are Your Options in 2026?

What Counts as Bad Credit at Remortgage?

Lenders assess credit histories on a spectrum rather than a binary pass/fail. What counts as "bad credit" in practical terms ranges from minor imperfections (a single missed payment two years ago) to severe adverse events (bankruptcy, IVA, multiple CCJs). Where you fall on that spectrum determines which lenders will consider you and at what rate.

Common credit issues that affect remortgage applications:

• **Missed or late payments** (especially in the past 12–24 months)
• **Defaults** (typically six years on the credit file)
• **County Court Judgements (CCJs)** — six years from date of issue
• **Individual Voluntary Arrangements (IVAs)** — six years from start date
• **Bankruptcy** — six years from date of discharge; restrictions may apply for 12 months
• **Debt management plans** — impact varies by lender
• **High credit utilisation** — not a formal adverse marker but can lower scores

Use our [remortgage savings calculator](/remortgage-calculator) alongside advice from a specialist broker to estimate what might be achievable given your specific credit profile.

Product Transfer: Your First Option

Before exploring the wider market, understand that your **existing lender** may offer a product transfer without any new credit assessment. This is because you are an existing customer — they know your payment history on your current mortgage.

If you have maintained your mortgage payments perfectly but have issues elsewhere on your credit file, a product transfer may be available at a competitive internal rate regardless of your credit score. The lender already has the security (your home) and your payment track record with them.

This is the first call to make: contact your existing lender and ask about product transfer options. If they offer a reasonable rate without a new credit check, this may be your best outcome.

High-Street Lenders — What They Require

Most high-street lenders (major banks and building societies) have strict criteria for credit history. Typically they require:

• No missed payments in the past 12–24 months
• No defaults in the past three to six years
• No CCJs at all, or satisfied CCJs over three to four years old
• No IVA or bankruptcy in the past six years

If you fall outside these parameters, standard high-street lenders are unlikely to offer a remortgage. However, this does not mean your only option is your existing lender's SVR.

Specialist and Sub-Prime Lenders

There is a substantial market of specialist mortgage lenders in the UK who specifically underwrite applicants with impaired credit. These lenders take a more case-by-case approach, weighting:

• **Severity of the credit issue:** A missed mobile phone payment is far less serious than an unsatisfied CCJ for £10,000
• **Recency:** Issues from five years ago are typically treated more leniently than those from six months ago
• **Pattern vs isolated event:** A one-off issue (bereavement, job loss leading to temporary difficulties) viewed differently from a persistent pattern
• **Current financial stability:** Recent income, employment stability, and mortgage payment record all count in your favour
• **Equity:** High equity (low LTV) provides the lender with security that partially offsets credit risk; specialist lenders are often more comfortable at 60–70% LTV

Specialist lenders operate at higher rates than mainstream products — the additional risk is priced in. The rate premium might be 0.5–2.5% above the best high-street rates depending on the severity of the credit history.

CCJs — The Details Matter

For County Court Judgements, lenders examine:

• **Date:** Is it within the six-year reporting window? How long ago?
• **Value:** A small CCJ (under £500) is treated differently from one for £10,000+
• **Status:** Has it been satisfied (paid)? A satisfied CCJ is viewed more favourably
• **Number:** Multiple CCJs, even small ones, indicate a pattern

Some specialist lenders will consider a remortgage with CCJs that are satisfied, more than two to three years old, and below a defined threshold. Others will go further, accepting unsatisfied CCJs within limits. A specialist broker will know which lenders match your specific profile.

IVA and Bankruptcy

An IVA (Individual Voluntary Arrangement) involves formally agreeing to repay a proportion of your debts over five to six years, supervised by an insolvency practitioner. Once completed, the IVA is marked as satisfied on your credit file and remains for six years from the start date.

During an IVA, remortgaging is typically restricted — the IVA supervisor must consent, and any equity released typically must be paid into the IVA. After completion, specialist lenders may consider a remortgage depending on the time elapsed and your current financial stability.

Bankruptcy discharge removes most debts but leaves a six-year mark on the credit file. Mortgages are possible post-discharge but through specialist lenders only, and typically require at least two to three years since discharge and substantial equity.

Steps to Improve Your Position Before Remortgaging

**Check your credit file.** Know exactly what is on it. Check all three agencies (Experian, Equifax, TransUnion). Correct any errors. Identify what is causing the most damage.

**Satisfy outstanding CCJs.** Paying a CCJ removes the "unsatisfied" status, which meaningfully improves lenders' assessment of you even though the CCJ itself remains on the file for six years.

**Maintain your mortgage payments perfectly.** Your track record on the mortgage itself is the most important single input for a remortgage lender. Every month of on-time payment strengthens your case.

**Reduce other debt.** Lower credit utilisation and fewer active credit agreements improve your profile.

**Wait if time is on your side.** Credit file entries have progressively less impact as they age. If your main issue is two years old, waiting another year may open mainstream lenders. If it is four years old, waiting two more years eliminates it.

**Use a specialist broker.** A broker with expertise in adverse credit mortgages knows which lenders are actively writing this type of business, what their current criteria are, and how to present your application most effectively.

Use our [remortgage savings calculator](/remortgage-calculator) to understand the financial benefit of securing a competitive rate versus remaining on SVR — the case for finding a remortgage solution, even at a higher specialist rate, is often compelling.