Useful Advice For Remortgaging With Bad Credit.
Below is a MRR and PLR article in category Finance -> subcategory Wealth Building.
Practical Tips for Remortgaging with Bad Credit
Summary
Considering remortgaging your home loan but worried about your bad credit history? Even with challenges like poor credit, CCJs, or bankruptcy, remortgaging is possible. Here’s how you can improve your chances:1. Enhance Your Credit Score
Start by paying off old debts and request creditors to remove any negative entries from your credit report. If you need positive credit listings, consider getting a department store credit card. Use it for small purchases and ensure timely payments to boost your credit score.2. Find a Co-signer
Enlist a trusted friend or family member with a good credit rating to co-sign your loan. Be honest about the responsibilities involved to maintain healthy relationships.3. Debt Consolidation
If managing multiple debts is challenging, consider consolidating them into your remortgage. This can help secure a lower interest rate and possibly provide extra funds to address other debts. However, remember that with bad credit, you may only borrow up to 75% of your property's value.4. Extend the Loan Term
By extending your loan term, you might reduce monthly payments, freeing up funds to manage other debts effectively.5. Consult Your Current Lender
Start by discussing your options with your existing lender. They might offer you favorable rates compared to what a new lender might provide.6. Explore Sub-Prime Lenders
If conventional banks aren’t an option, look into sub-prime lenders. Expect higher interest rates, typically 1-3% more, but an extended loan term could lower monthly payments.7. Plan for the Future
If you remortgage with a sub-prime lender and the rates aren’t ideal, remember you can remortgage again. Focus on maintaining a solid repayment record and continue working on your credit to be ready for better opportunities later on.By following these steps, you can navigate the remortgaging process more confidently, even with a challenging credit history.
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