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If you want to know whether you can re-mortgage your property even though you’ve got bad debts, the answer is yes. It’s certainly not impossible, you just have to know what to do and who to go to for help.

Your Credit Score

Your record score is recorded on your credit file. Your file is kept with a credit agency. There are three main credit agencies in the UK. Experian, Equifax and Callcredit. The score is a number. Each credit agency has a different system for working out your score. That means you won’t have exactly the same number with each agency. For example, with Experian 561-720 is poor. 881-960 is good. With Equifax and Callcredit these numbers could be slightly different.

Why If I don’t have any Credit is my Rating Low?

Bad credit doesn’t necessarily mean you owe money. You can have a bad credit score because you don’t have any credit. You can build up your credit though. The easiest way is to get a credit card. Ask for a small limit and then pay a bill using it. Then every month pay off the whole amount of what’s owed. The payments will be seen on your credit report. If you have been responsible, you’ll begin to build up your credit score.

What is Bad Credit?

Bad credit means you have not managed your finances very well. It could mean you have missed payments or paid late. Maybe you defaulted on a payment because you weren’t able to keep up with the instalments.

Other reasons for bad credit is bankruptcy or County Court Judgments. These stay on your file for six years, even if the debt is paid.

Payday loans don’t look good on a credit report especially if payments have not been received on time. Debt management schemes and Individual Voluntary Arrangements (IVA’s) will also affect your score.

How Can I get a Re-mortgage?

If you approach your bank, bear in mind that they have a full financial record of your dealings with them. Things that are not on a credit file, such as overdrafts or bouncing direct debits will be known to the bank. That might mean a low score.

The best way to get a re-mortgage is to go a broker. Any searches they make will not leave a footprint on your credit history. 

A mortgage broker will take your details and search for the very best deal. They are experts at getting mortgages for customers with bad credit.