NEW 5.15% APR Bad Credit Remortgages

Bad Credit Remortgage interest rate of 5.15% variable.

From January 1st 2025- 2 new lenders for bad credit remortgages.

From February 1st 2025 – NO BROKER FEES!

Don’t pay a £1495 fee to a broker!

Ravenwood Mortgage Services has funds from a lender offering excellent terms, with an open-minded view to some bad credit.

However, funds are limited, so please complete the form below with your details. As funds go down, the lender’s criteria will become stricter!

In early January this year (2024), some new lenders appeared with excellent terms for bad credit remortgages. Some rates are only 1% higher than normal prime lenders, which was previously unheard of, especially without a big fee.

If in the past six years you have been unable to service your credit agreements or you have ended up with a ccj for some stupid reason like a forgotten water bill, many lenders will reject your mortgage application straight away.

Primary residence poor credit remortgages from Ravenwood

Ravenwood Services has relationships with lenders that take an open-minded view of people with some adverse credit, as they understand that not everyone with a ccj or default is a complete deadbeat. Ill health, breakdown of relationships, and temporary loss of work or income are all plausible reasons for some credit arrears. At the same time, a person may still have a promising future of being able to support a mortgage.

Now, post-Lehman collapse, lenders want to know if you can service the mortgage you’re committing to. The prospect of further house price increases is no longer enough for lenders to lend. But for reformed responsible borrowers this a good thing not a bad thing and should protect the property market from getting frothy with hot speculative money.

With today’s bad credit remortgages, even if some of your bad credit is gone, it may be possible to refinance away expensive 2nd charge lending and put all the debt on the home into one first-charge lender at a reasonable rate. Also if you have secured borrowing at a shorter repayment duration with a high monthly payment, as a result, refinancing this away can further reduce your monthly payments, so the term is matched with your entire mortgage.

Bad credit remortgage UK options

While it is often true that a mortgage from 2006 or 2007 is a good deal and worth keeping, especially if it’s interest-only, there are still opportunities to refinance at a fixed rate to protect yourself from rate rises in the much longer term. An adverse credit mortgage broker can help you secure funds.

Interest rates should stay low in the short term (2018 and 2025), but after that, the path of short term rates could be on the rise. It’s common to keep a mortgage for seven years, so refinancing with a five-year fixed deal could prove very savvy even for people with bad credit history.

Some economists predict that if interest rates rise, so should earnings or wages, as inflation would only start to become a problem as a result of increasing wages.

Renting vs Buying, even with some adverse history

Renting a home is financially like having a 100% interest-only mortgage at about 5-6%. So if the house that suits your needs is worth about £120,000, the rent is maybe £7200 a year or £600 a month.

Check out this Knight Frank report page:

http://www.knightfrank.co.uk/research/reports/results.aspx?typeid=research&isocodes=GB&view=grid

If you have some savings, say £25,000, you would only need to borrow £95,000. Even a mortgage with a rate as high as 4.5%, the interest on the mortgage is £4275 a year or about £356.25 a month. Plus, you have the stability of owning your own home and not being given notice by a landlord who may want his property back to sell or to live in himself or want to turf you out so he can put his rent up.

Government legislation has recently clamped down on agents charging tenants substantial application and referencing fees. But even modest fees and delays in getting your deposit back make the costs of moving every 18 months quite expensive.

It’s fair to consider that you must repay capital if you get a repayment mortgage, which is what you must budget for. It would help if you planned for building insurance, which is likely a mortgage term.

Can you remortgage with bad credit history?

Remortgaging with bad credit is often similar to having a good credit history. The main difference is that an adverse credit remortgage can have high lender fees and interest rates. A remortgage with poor credit may have more strict income requirements and a lower loan to value. A remortgage for bad credit can have worse redemption penalties than other, more flexible terms.

Another feature of remortgage deals for bad credit is the scrutiny of your age.

You should budget for some improvements/repairs for a freehold house, and of course, if you buy a leasehold flat, you need to plan for the management fees.

If you don’t pay your management fees, the management agents are entirely within their rights to write to your lender and get you in trouble for breaking the terms of your lease and, therefore, the terms of your mortgage. They will simply look up your lender with the land registry. The lender is shown with the date the lender took the charge.

When borrowers get into financial difficulty, mortgage lenders have been known to pay the borrower’s management fee arrears and add them to the mortgage principal, as the consequences of not paying the management fees are severe for both the borrower and the lender.

Good reasons for remortgages for bad credit

Get rid of an existing lender or lender(s) with very high rates
Consolidate a high rate 2nd charge secured loan with a mismatched or too short-term
The existing lender discount variable rate has expired
The existing lender fixed rate has ended.
An existing lender has offered you a cash incentive to refinance away from them.
Existing lenders term has run out
Court has said you must remove the partner from the mortgage as a result of separation/divorce.
Release equity from the home to pay for a divorce settlement or stop the fire sale of other liquid assets
Raise money for the purchase of another property to rent out
Consolidate existing unsecured debt to reduce monthly outgoings