Remortgaging – Your Credit Score
Your credit score is one of the main factors whether you can get a remortgage or not. To elaborate more, there are three aspects to look at from a lender’s perspective.
- Total debt owed
- Your record of payment
- Your debt handling history
1. Total debt owed
If you owe too much debt then this could affect you remortgaging. Lenders will preferably want borrowers to be able to pay back the mortgage comfortably, so if you have too much debt then this could affect your chances of a remortgaging.
2. Your record of payment
The payments you’ve made on your bills etc in the past are important to a lender in judging whether you can repay the mortgage. If you pay your bills on time with no defaults, it shows that you are capable of paying your debts on time and reliable with credit.
3. Your debt handling history
How you handled your debt in the past is another factor taken into consideration by lenders when remortgaging. If you have no defaults in the past with your debts then it gives lenders some evidence of your credibility in handling debt.
Although remortgaging with bad credit is possible, it is always better to have a good credit history as you can get better deals. Lenders will usually look back at your credit history for the past 18 months so if you have bad credit but looking to remortgage, it would be advisable to build up good credit for 18 months.
