Read to Know About Remortgage With A Default

September 6, 2021 0 Comments

You need to remember that every lender can be different. A few may be specialized in offering low rates and will lend to customers having a clean credit score, while some other may be specialized in self-employed lending, and some are specialized in adverse credit.

Thankfully, you can find several mortgage lenders who may be happy to approve applicants having all kinds of defaulted credit accounts available on their file. Working along with a certain mortgage broker will help you locate all these lenders quickly, without going through the hassle of comparing hundreds of rates yourself.

Reasons for remortgaging

There can be many reasons why one may go for remortgaging. Quite possibly, you are trying to consolidate your entire debt, free yourself up some equity for enjoying your lifestyle a little more, or you may be interested in funding a business.

The objective of your freed funds may also play a big part in whether your application is going to be successful or not, as certain moves like remortgaging may significantly improve the person’s financial situation and stability, which is viewed always positively by lenders.

Can I get a remortgage with defaults?

To get the mortgage with defaults can help to reduce your monthly payments, offer you a much better rate, or can free up your money for home improvements. Often people remortgage for taking control of their finances. In case you have got a default present on your credit report, then remortgaging your property will be more difficult; however, not impossible. Mortgage Experts Online can also help you.

To answer the above question is a little complicated one relatively; let us share in this post a few other details so that you can find your answer. You can get this mortgage if:

  • On your file, your defaults are now showing up as ‘satisfied.’
  • You have already got good equity built up in your property
  • Your credit score is not prohibitively low
  • Currently, you are not in an IVA
  • Your bankruptcy has been discharged already

If you are not meeting all the above criteria, then surely it is not always a deal-breaker for remortgaging; however, it will make your case a bit trickier to get a proper deal with any best possible rates.

Will some defaults be more severe than others?

They can be. All lenders will surely consider a mortgage payment or secured loan payment defaults very seriously and also weigh them accordingly while making a decision. A few lenders are, however, a little relaxed about it.

As an example, any missed payments on your mail-order accounts or any mobile phone contracts. Any defaults on your credit cards and also loan repayments will fall somewhere in the middle path.

How soon can I receive a mortgage?

If, on your record the default is for a longer period, then it is expected to have less impact on your ability to receive a competitively priced mortgage. Also, it will stay recorded on your credit record at least for six years from the default date, after which you may start repairing your credit rating.