Here are the key features of the Jubilee Remortgage lender:
- 5.19% capped interest rate – can go down but not up
- No lender, advisor or broker fees
- A direct mortgage lender not yet featured on the comparison engine sites
- Free, automated, fast, no obligation home valuation
- No early repayment charges (ERC)
- A portable mortgage that can move when you move
- Interest-only and repayment terms
- A decision in principle based on an unrecorded soft credit search
- Broad tolerance of previous credit problems
- Up to 90% loan-to-value
- One penalty-free payment holiday per year subject to 14 days’ notice
- There is no valuation penalty on flats or other leasehold property titles
- No upper age limit
- Completions in as little as 14 days
This mortgage is ideal for consolidating debt, including existing loans, credit cards, store cards, high-rate car finance, and other financial commitments.
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You will be automatically rejected if:
- You have unspent criminal convictions for fraud or other crimes involving dishonesty
- You are an undischarged bankrupt
- You are currently in the process of having the home repossessed
- You are not a UK resident
- You are not legally allowed to reside in the UK
- You do not live at the house you are trying to remortgage
Your home will be rejected if:
- It is a holiday home that has limited occupancy
- It is a caravan
- It is a park home
- It has a seriously defective lease or title that is subject to dispute
- It is a home with significant structural problems or in need of significant repair
- Your building insurance policy is not up to date, or the 3rd party freeholder cannot prove it is current
- You have significant arrears in service charges or other obligations
Bad Credit Remortgages – CCJs, IVAs, Defaults Accepted
We make finding an adverse remortgage easy. Financing options are available for all situations.
Remortgage interest rates are fixed at 4.93% for at least two years. From June 2024, we have 5 new lenders for poor credit remortgage products.
Offers are limited, so please complete our short form with your details. As demand increases, the lender’s criteria will become more strict.
There’s only one barrier that’s going to block your success in the bad credit remortgaging process. That’s affordability. If you can prove you can afford the repayments on any loan, then it’s only a question of which lender is most suited to approve your loan.
If you know you can afford the repayments, you will see that you can get a remortgage approved with many types of bad credit entries on your reports. It’s only the entries that are assessed, not the score that the credit reference agencies assign to your report.
Can I refinance my mortgage with a bad credit mortgage?
You can because there are two types of lenders. The most common are your bank, as they’ve got nearly every financial product you can imagine… so it’s the logical place to apply – to the company you do your day-to-day banking with.
The other type of lender is those whose sole business is risk-based. While the banks on the high street are popular, the secondary market isn’t so much. In the finance sector, these lenders are known as subprime lenders.
Think of them like this:
- Prime – Lenders suitable for applicants with a decent to excellent credit report
- Subprime – For all applicants with negative entries on their credit report
The entire credit sector is split into those categories. It doesn’t matter if you need a credit card, secured or unsecured loan, or store finance to buy a new washing machine on credit. When you need to borrow or obtain goods through a finance agreement, you’ll get funding approved from one of those two types of lenders: the mainstream (prime) lenders or a subprime lender.
There are various adverse credit remortgage lenders, which all vary in their definition of risky borrowers. What is too risky for one lender could be another lender’s perfect customer.
Brokers come into the equation because they have the experience and knowledge of what each lender considers too risky and identify the company (and often more than one lender) that’d most likely approve the loan. It depends on the severity of entries on your credit report.
Why Should You Remortgage?
60% of Households Could Save Money By Remortgaging To A Better Deal. How Much Could You Save?
Remortgaging interest rates from 5.19% fixed variable for at least three years. Please enquire today without obligation.
Is it possible to refinance with bad credit and late payments showing?
Any recent late payments will indicate to lenders you’re high risk because you can’t meet your current payment deadlines. As such, your choice of lenders will narrow. It doesn’t rule you out of the remortgage process. It just reflects a need to prove you’re trying to control your finances—one of these being an adequately prepared budget, which there’s further information about below.
I’m worried my debts are too high to be accepted for any bad credit remortgage
Every lender will always assess your affordability for finance. You will not be approved for a secured home loan if your current financial circumstances indicate you wouldn’t be able to afford the repayments. Rest assured, if you’re accepted, you will be able to afford to borrow at the rates presented. And lenders will not charge you based on what they assess you to be able to afford.
They’ll provide a conditional offer based on your risk level. You are only approved for affordability. Your household income doesn’t affect your interest rate. Just risk, and that’s assessed using the information presented on your credit files. There are other factors to consider, such as the term of the loan when you plan to retire, if you intend to pay your kid’s university fees, etc.
Award Winning Poor Credit Remortgage Deals. Simple & Stress-Free Remortgages. Compare & Save Now.
Some people may feel like they’re drowning in debt, especially when there’s not much disposable income left at the month-end
To be considered as maxed out on your available credit, you’d be spending over 36% of your current monthly income on debts. A hypothetical example is someone with a £24,000 salary, roughly a monthly income of £2,000 (before tax and NI) and spending upwards of £720 per month towards debt repayments.
Such a scenario could happen following a relationship breakup, resulting in a remortgage being required based on a sole income rather than a joint household income.
If that were the case, you’d need to bring down your debt repayments. Not repay the debts in full. Remortgaging with bad credit is usually done to pay your monthly debt repayments down as it’s often unsecured debts on a high interest that move onto secured debts with lower interest.
To work out if you can realistically afford to remortgage, it’s not as simple as finding a remortgage bad credit calculator online, punching in some numbers and hitting calculate. It’s best to do a complete and thorough budget assessment so you know where you’re currently spending. This will always be the case with debts, and the first thing you’ll do with any debt advice service.
Prepare a budget for a mortgage company mortgage deal from a high street lender or other specialist mortgage lenders
That’s a real budget and not a monthly planner. A tool you can use instead of any mortgage calculator is this budgeting tool: http://www.stoozing.com/calculator/soa.php
It’s a “Statement of Affairs” tool that considers various expenditures. It will help you collate all of your figures and prepare for an adverse credit mortgage advisor to help you work things out or work with a debt advisory service.
Once you’ve used it for your calculations, print a copy of it out, as it’ll help you in the application stages. It’s quite a comprehensive budgeting tool, so it will go a long way towards helping you and any advisor you work with to understand your financial position. If you’d prefer to remain anonymous and not submit personal financial details online, note all the expenses listed and complete it with pen and paper.
The more details you have accounted for in your expenditure, the more lenders have to help with their risk assessment, and for that part, more details are always better. Whether you need to remortgage with bad credit and arrears, or if it’s minor late payments or missed payments on a secured loan, there are lenders available to cater to various refinancing options.
Speak To An Expert To Get Your Free Bad Credit Remortgage Quote Today!
We could help reduce your monthly repayments by switching to a better remortgage deal.
Mark Avery
Our Specialist Remortgage Expert
Jubilee Are Here To Help with specialist mortgage lenders
Whatever Financial Situation You Find Yourself In, We Have The Experience And The Expertise To Assist You In Finding The Right Adverse Remortgage Product. Get in contact with Jubilee, and we’ll do our best to make sure the outcome always works out For You.
Other Things To Consider In The Next 12 Months with Bad Credit Mortgage Lenders
The BoE’s Financial Policy Committee (FPC) recently released the June Financial Stability Report. After distilling the contents, reviewing the material, and seeing the proposed actions, you should know some critical insights about the direction lenders are expected to take. That direction is to edge on the side of caution because the FPC issued banks a warning, meaning they need to be more cautious with risky borrowers.
To ensure they got the message, they did the logical thing and demanded banks pay £5.7bn in the next six months, with a further £5.7bn by the end of next year, a total of £11.4 billion payable in the next 18 months.
Why not?
That’s the bank’s problem, and the report does not suggest anything that will impact consumer interest rates or directly or indirectly affect customers, at least in the short term.
There are, though, seven interesting points raised that are worth considering about lenders before submitting a mortgage application.
- Risky borrowing will be stricter – specialised mortgage providers show their bad credit faqs.
This is the obvious one. The FPC is concerned that banks are complacent when taking on risky customers.
This has been seen with an increase in the number of adverse mortgage products available, but of concern to regulators is the number of approved bad credit mortgages that would be considered risky and probably better approved by a specialist lender rather than being provided as a standard mortgage with some changes.
Getting approved by a bank for a mortgage is likely more challenging when you have adverse credit. This is nothing new, but for a small time, some banks were approving.
- Balloon payments on car finance will be viewed as risky
The report revealed that 15% of borrowing is in car finance. The worrying aspect is that the vehicles are purchased under a Personal Contract Purchase (PCP). It’s a type of short-term funding similar to a hire purchase.
At the end of the lease term, you can either pay a lump sum to buy the car, or the dealership will repurchase it from you. If you buy the vehicle, it’s a balloon payment, and if you sell it back, the vehicle’s depreciated, so there’s a risk you’re going to be liable for a high fee anyway.
If you have a PCP in place, lenders may ask how you intend to repay it at the end of the term. It’s not a requirement, but it’s a possibility so prepare for that before you apply.
- Home loans for property extensions account for 10% of consumer borrowing
10% of homeowners have taken advantage of the low-interest rates to take out finance to upgrade their homes, often by extending the property rather than moving to a more extensive and more expensive property. The banks are failing to take into account the risk of interest rates rising.
The BoE is worried that lenders are taking on more high-risk customers while failing to consider future market rate increases, which will affect a consumer’s ability to repay the secured loan.
The interest rate is only temporarily lowered and will rise in the future. It’s only a question of when. Low interest rates make it more likely that people will be vulnerable to interest rate increases when that time comes. That’s why fixed-term mortgage rates are appealing just now.
- Credit cards account for 10% of consumer borrowing
Credit cards were mentioned; the stats show they account for 10% of consumer borrowing. It doesn’t state how much per person, but just know that you’ll likely be asked how much you pay towards it if you have high credit card debts.
Paying the minimum is never a good idea because that’s interest only and nothing to your capital. Lenders don’t like that, so if you’ve got a credit card balance, ensure you can afford to pay more towards clearing it. Preferably, you should have a date set for when you expect it to be cleared.
The Financial Planning Committee’s keyword is resilience. They want to ensure the banks and the UK financial market, including insurance firms, are robust enough to withstand any adverse shock to the finance market. Adverse effects could ripple across the economy, resulting in higher interest rates and possibly impeding house prices, which in turn would impact remortgage deals due to lower equity in the home.
- Rates are low, and you can stress test yourself with different lenders
According to MoneyFacts.co.uk, the standard rate for an adverse credit mortgage on a two-year fixed-term deal is 4.39%. That’s 2.12% higher than a conventional mortgage. Because of that, when you’re planning for a mortgage, your worst-case scenario would be a dent in your credit records, which you can account for by making sure you can afford mortgage repayments if they increased by 3%.
This interest cushion in your financial planning when applying for a mortgage helps you account for a possible interest rate increase at the end of a fixed term. But also in the event of an unexpected financial situation, such as an adverse credit report increasing your risk level, subsequently seeing you need a higher rate lender.
- More fixed rate adverse credit remortgages are available with a good property value
Money Facts revealed in June that there were 694 poor credit mortgage products available across the market. That was a 167-fold increase from March 2017, when there were 527 mortgages available for people with bad credit. Avoid late payments and get a no-obligation chat with expert advisers.
As with anything, the rates become more competitive with more supply. That’s what is happening just now, but with the FCA issuing the warning to banks, it remains to be seen if the products available will diminish or if it’s speciality lenders that will increase their mortgage product offerings.
For the moment, the only suggestion is that banks will become more cautious, and when that happens, it’s often reflected in higher interest rates. Too many people have been affected by bad credit, and future lending can’t afford not to consider bad credit applicants.
That’s why hundreds of products are available, and those are only the standard products for borrowers with adverse credit. Specialist lenders can tailor products to meet your exact requirements, and even more deals are on offer.
A remortgage with bad credit – what about my credit rating?
With an adverse credit history, the lender assumes they just have to have a bigger department of people making outgoing phone calls chasing people for mortgage payments.
What the poor credit history lender really cares about is your ability to service your mortgage payments.
It is very important even if you already have a bad credit history, you never get into mortgage arrears. This will make your low credit score even lower.
Specialist lenders’ bad credit remortgage rates will fluctuate depending on their risk appetite and economic outlook.
It’s good to monitor your credit file and number of ccjs by having accounts with each credit reference agency. Sometimes, one credit file will have different data in it and see your poor credit rating in a different way.
Bad credit mortgage lenders – very poor credit score?
Bad credit remortgage lenders may just use one of the main credit reference agencies, so finding out in advance which one they use could be very helpful.
With a poor credit score, bad credit remortgages are very accessible by using a mortgage broker, even if you’re on a debt management plan.
Mortgage brokers will look carefully at your credit record, debt-to-income ratio and bill payments on existing debts to ensure your bad credit remortgage application has an affordable mortgage payment.
The mortgage advice consultant should study your bad credit rating before the mad credit mortgage lender does, as this could prevent specialist bad credit lenders from rejecting your application.
High street lenders will very rarely lend to people with debt management plans, poor credit reports, an existing mortgage in arrears, or other financial difficulties.
Bad credit remortgage loans – county court judgements?
Sometimes, you can explain away an adverse credit event with a notice of correction when an adverse remortgage lender will take a view of your circumstances and debt-to-income ratio. The lower your loan-to-value ratio, the better.
Bad credit score mortgage deals could involve a broker fee where the broker knows the lending criteria well and the specifics of your credit issues.
Mortgage lenders that offer the best bad credit remortgage deals are also more likely to require a more in-depth valuation or survey, affecting the amount of equity you can release.
It can take six years to get your clean credit back completely, but the important thing is that most people can get financial advice based on their current UK credit ratings, taking into account their other debts.
Most people with a late or missed payment history will be frozen out of the high street bank mortgage market, especially if they rely on an adverse specific credit card.
If you have these circumstances, a specialist mortgage broker with up-to-date knowledge of poor credit remortgages will pick the right lender for you and your low credit scores. However, you will likely not be able to get the best remortgage deals.
It’s easy to spot people who manage money poorly because there will be evidence of payday loans, outstanding debts, credit agreements close to their credit limit , and maybe arrears with the current mortgage provider (missed monthly payments).
The lower your LTV, the more likely mainstream high-street lenders will consider you a responsible borrower.
Some of the best standard remortgage offers require a loan to value of 60% maximum.
In addition, very low monthly expenses show a good financial status. For bad credit remortgages, most lenders like to see a loan to a value of 70% or less.
If your current mortgage balance is low, and your current mortgage has a low discounted rate a new mortgage maybe a bad idea. If you want to release equity, secured loans can be the best deal not a bad credit remortgage UK.
Debt secured on your home can enable people with credit problems to raise cash outside the mainstream lenders at reasonable rates and terms. 2nd mortgages can sometimes have a higher interest rate than a different lender or your first lender.
If you have never had financial problems with your existing lender, you may be able to ask them for further advice without an arrangement fee. They may still want to do an affordability test to see if you can afford the repayments, but you may be spared from high interest rates if your loan-to-value LTV is not high.
Bad credit mortgage rates VS adverse credit rating secured loan lenders rates?
Generally, bad credit mortgage rates are lower than bad credit secured loan rates, but the credit check with the credit agency may be more tolerant of other poor credit issues and payment defaults.
An impartial mortgage broker can tell you more about mortgage terms and your loan-to-income score. Lenders tend to haircut your property value due to the perceived risk of a credit crunch during the term you will have the second-charge mortgage or bad credit remortgage.
I will have a clean credit history in 18 months’ time – should I wait and get a suitable lender than with a better mortgage offer?
Maybe, yes, depending on what deals the many specialist lenders will make now with our past financial trouble. A whole-of-market broker with a long history of financial management will establish whether you should switch mortgages based on lender criteria on a case-by-case basis.
If you have arrears on your existing bad credit remortgage, it is unlikely that specialist lenders will even consider starting poor credit remortgage applications.
Suppose you can’t improve your credit score. In that case, the potential lenders for releasing equity will be much smaller, with a higher chance of getting a positive lending decision because you don’t meet the relevant criteria or your property’s value is too low.
Other Remortgage Options ignoring your current lender mortgage company:
Understanding Bad Credit and Loan to Value (LTV) in the UK
When dealing with bad credit, it’s essential to understand how it impacts your ability to secure a loan-to-value (LTV) mortgage. Bad credit can result from various factors, including late payment, credit utilisation, county court judgements, or even bankruptcy or individual voluntary arrangement (IVA). These negative marks on your credit profile can make it incredibly frustrating to seek financial products.
Valuation and LTV Ratio
Your property’s valuation is critical in determining your LTV ratio. If you have more equity in your home, you can generally borrow more than those with less equity.
For those with bad credit, having a higher equity stake can improve your chances of securing a competitive deal on your mortgage. However, most big banks may still be reluctant to approve applications from individuals with a low score.
The Role of a Soft Credit Check
Before making a formal mortgage application, it might be wise to consider a soft credit check. This can give you an idea of your eligibility without impacting your credit score. Many lenders use this as part of their affordability assessment during the initial consultation. Mortgage experts and specialist brokers can help guide you through this process, leveraging their in-depth market knowledge.
Seeking Advice from Mortgage Experts
When looking to remortgage to better deals, especially if you have declared bankrupt or have been refused a remortgage in the past, consulting with expert brokers is crucial. They have access to an extensive panel of lenders and can help find the right mortgage for your circumstances. Remortgage with poor credit options are available, but the process may require a bit more effort and patience.
Other Criteria Considerations
Lenders also consider other criteria such as your status on the electoral roll or electoral register and whether you are financially linked to anyone with a poor credit history. Regular payments on existing loans and having a stable address history can also be beneficial. Different lenders have different lending criteria, and what works for one might not work for another.
The Importance of Specialist Brokers
Using a specialist broker can be advantageous, particularly if you have unique circumstances. They can help with additional borrowing, whether for home improvements or other needs and ensure that you get a good deal despite your bad credit. They often work with a panel of lenders who are more flexible and willing to consider your personal circumstances.
Equity Release and Personal Loans
For those looking for extra cash, equity release might be an option. This allows homeowners to access the equity tied up in their property without needing to move. Alternatively, personal loans can be considered, though they typically come with higher interest rates, especially for those with poor credit.
Getting Approved Despite Bad Credit
Working with the right professionals is possible to get a mortgage or remortgage with poor credit. The whole process can be less daunting with the support of mortgage experts who understand the challenges faced by those with bad credit. They can help you navigate through **mortgage applications**, ensuring that you meet all the necessary requirements to improve your chances of approval.
Debt Sustainability Considerations – will late payments make higher rates inevitable?
If you have been declared bankrupt or have had an individual voluntary agreement, it is vital to demonstrate your current stability and reliability.
Making regular payments on time and reducing your overall debt can significantly enhance your creditworthiness. Moreover, seeking advice from professionals with an extensive panel of lenders can provide you with more options and potentially better terms.
By understanding these key aspects, including LTV, bad credit, valuation, and the importance of a soft credit check, you can take the necessary steps to improve your financial situation and secure a new or competitive deal that suits your needs.