A Guide to Getting a Bad Credit Remortgage

There are several reasons why you might be in the market for a bad credit remortgage. You might be wanting to try to lock in a lower interest rate, or perhaps you simply need to use the bad credit remortgage as a way to consolidate some of your debts.

Regardless of your reasoning, securing a bad credit remortgage can sometimes seem like a daunting task? in the end, though, it's usually much easier than you might think.

Defining bad credit

If you're looking for a bad credit remortgage, then you already know (or at least have a suspicion) that your credit is less than perfect.

If you're like a lot of people, though, you might not be exactly sure what this means or how credit is determined.

Your credit rating is a numerical score that's given to you based upon reports from your previous creditors, who are the people who have issued you a credit line or a loan in the past.

If you've made your payments on time, then they send in a positive report and your credit rating goes up.

If you've missed payments or defaulted on your debts (meaning that you didn't pay them back), then they issue a negative report and your credit rating goes down.

The lower your credit rating score is, the more of a risk it's considered to lend you money? after all, if you've had problems repaying your debts in the past then it's reasonable for lenders to thing that there's at least a decent chance that you'll have those same problems in the future.

This makes it much harder to get loans and credit offers, and the ones that you do get usually have much higher interest rates and require some form of security deposit or collateral.

The bad credit remortgage

A mortgage is a special type of loan, used to purchase a home or other real estate and using that same property as collateral for the loan.

The mortgage lender has a legal claim to the property, so if you fail to repay your loan then they can repossess and sell the house or real estate.

A bad credit remortgage is a mortgage loan designed for people with lower credit scores, and is issued on property that you already own (and may or may not still have a mortgage on.) Since the house or real estate serves as collateral, you're more likely to be approved for a bad credit remortgage than some other loans? meaning that the bad credit remortgage can be used in the place of the loans that you weren't approved for.

It can also be used to restructure payments on your previous mortgage (since the new loan pays off the old one, and is for a lower total amount) and reduce monthly payments, usually with a slightly lower interest rate.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

---

Be Prepared when Seeking a Mortgage

When you're looking for a mortgage, whether it's a first... Read More

Follow A Few Simple Steps To Make Shopping For Your New Home Loan A Little Easier

It is likely to be one of the largest purchases... Read More

Consolidate Your Debt With a Home Equity Loan and Improve Your Credit Score

A home equity loan is a loan based on the... Read More

What Are Mortgage Brokers And Why To Use One

"Mortgage" is formed from two words: the French word "mort"... Read More

I Have A Slice of the American Dream and It is a 30 Year Nightmare

Well, we did it. We are buying a beautiful, brand... Read More

Home Mortgages: Does It Ever Make Sense to Pay Points?

Interest rates on home mortgages are often quoted with and... Read More

Borrow on a Budget: Getting the Cheapest Home Improvement Loans

Getting the cheapest home improvement loans isn't always easy. It... Read More

What is an Offset Mortgage?

An offset mortgage is very similar to a current account... Read More

The Debt Test: Are You Making Out a Mountain Out of Your Mortgage?

According to the Council of Mortgage Lenders, first-time buyers are... Read More

Understanding a UK Commercial Mortgage

In many ways a commercial mortgage is just like a... Read More

Real Estate Finance Strategy that Few People Consider

If you are considering a new home loan anytime soon,... Read More

Save Yourself from Homebuying Disasters

Whether you are a first time home buyer or a... Read More

Mortgage ? What, Why, When, and How?

What is a mortgage? Here's what The New Merriam ?... Read More

Option ARM Mortgage Loan - Is This Really for You?

What happened to the days of a 15 or 30... Read More

Home Equity Loans - How To Use Your Homes Equity to Consolidate Debt

If you've got a wallet full of credit cards, and... Read More

The Right Home Loan - Floating or Fixed Rate Loan

Choosing a home loan has never been tougher. Yes, with... Read More

What is a Current Account Mortgage?

Current account mortgages are fairly new to the sector. They... Read More

6 Things to Consider Before Refinancing

Perhaps you're a homeowner in need of some quick cash.Maybe... Read More

Should You Refinance?

There are several reasons that might make someone consider refinancing... Read More

Guide to Interest Only Mortgages

Here is a useful guide to interest only mortgages. An... Read More

First Time Home Buyer Loans Made Easy

When it comes to firsttime home buyer loans, a little... Read More

Bad Credit Home Loans - Pre-Approval is Still Possible With Adverse Credit History

If you are among the millions with less than perfect... Read More

An Infinity Mortgage?

Here in Spain the concept of a mortgage period of... Read More

The Top 5 Reasons to Buy a Home

1. Save on your income tax.Yes, something good can come... Read More

When is the Right Time to Refinance Your Mortgage?

You've heard that interest rates are down and you think... Read More

Things that You Need to Know before Financing Your Home

Frequent Asking Questions:What are Points? A. There are several types... Read More

Bad Credit Mortgage Refinance - Should I, Shouldnt I?

It is a common financial scenario across households in the... Read More

Why Choose a Home Equity Loan?

There are many reasons for choosing a home equity loan.... Read More

6 Helpful Mortgage Tips

Here are some mortgage tips that can help you obtain... Read More

Bad Credit Home Equity Loans

A home equity loan allows you to borrow against the... Read More

Home Equity Loans Online

If you are in the market for a home equity... Read More

Seniors Can Use a Reverse Mortgage to Fund Annuities, Investments, and Insurance Policies

For many seniors in or entering retirement, the prospect of... Read More

How To Determine The Price Of Your Home

Why is it that some homes sit on the market... Read More