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UK Bad Credit Remortgage
Remortgage's in the UK are at an all time low in November 2008 as the mortgage and remortgage market has shrunk due to the credit crunch. People with bad credit are more likely to be refused a mortgage or remortgage as the trend is now for lenders to restrict what they will borrow depending on the level of bad credit.
There are some signs of improvement though as a couple of sub prime and adverse credit mortgage lenders have reduced their interest rates making the monthly payments more affordable.
One of the main obstacles people with bad credit face is the loan to value (LTV) as lenders have reduced the amount of LTV they will borrow for people with bad credit - for example, 18 months ago most if not all mortgage products for the sub prime market would have ignored defaults, in today's market its likely you will be restricted to 85% LTV for a purchase and 80% LTV for a remortgage for anything other than very small or minor defaults registered on your credit file, credit reference agencies hold information about a persons credit on their credit file and everyone in the UK has a credit file showing their previous credit history which lenders use to help determine a persons credit worthiness.
UK Bad Credit Remortgage, is it worth applying?
Thanks to a number of specialist bad credit mortgage brokers finding out if you can apply for a mortgage or remortgage can be made fairly simple, a broker who specialises in bad credit should be able to let you know if you are likely to be accepted for a remortgage within the hour if you know what credit problems you have. If you don't know what obstacles may be listed on your credit file then the broker should be able to get a credit search done for you or you can apply for your credit report via this site.
Once you have contacted a broker and they have confirmed you could be 
eligible for a mortgage they should be able to apply for a decision in principle from a lender that will accept your previous credit history and if you are happy with the monthly payments, charges and interest rates offered the paperwork can be made much easier if the broker agrees to complete the majority of it for you.
