Give it time

Whilst it might not be the most attractive option, waiting for a while before submitting your remortgage application can make a difference to whether or not you are accepted. Blemishes on your record can be seen as less serious over time, especially if your financial situation improves.

If you’re not able to wait out your poor credit history, there are things that you can do proactively to improve your score. It’s wise to view your credit file before you decide whether or not to proceed with an application. Some credit reference agencies, such as ClearScore, allow you to see your credit report for free. 

Repair your credit history

It is possible to take actions to repair your own credit score. First of all, check that the information held about you is correct. If you have a list of previous addresses or dormant credit accounts, such as old phone contracts, this can reflect badly on your score. It is usually possible to ask the credit reference agencies to remove entries that are incorrect or no longer relevant.

Establish a pattern of consistent payments and responsible credit usage. This might be through paying off the existing debts that caused the marks on your credit file. You can also stay within 50% of any credit limits that you have on credit cards and pay off the monthly spends in full. Of course, you should always be sure to make prompt repayments on your mortgage a priority.

Present as a lower risk

Whether you have waited for your credit score to improve or proactively spent some time improving it, it’s best to present as less of a risk to the lender. So, for example, ensure that you have a stable income and offer a higher deposit. 

Considering cheaper properties will not only lower the deposit you need, making a higher offer more possible, but will lower the LTV (loan to value rate) of a potential remortgage.

Have an honest and thorough explanation about your poor credit score

Lenders are interested in the reasons behind your lapse in financial management as well as any efforts you’ve made to rectify the situation. It’s important to be honest about your reasons, because lenders will conduct thorough searches. Being dishonest about your credit history will not go in your favour.

Buying with a partner 

Lenders will consider the credit history of both mortgage applicants when assessing the risk involved with lending. If your partner has an immaculate credit record, then it may draw some attention away from your low credit score. You should consider, however, how this will affect your partner’s future credit history. 

In contrast, if your partner is the one with the poor credit history, you may be more likely to be accepted if you apply on your own. Of course this will also depend on your personal income.