If you have a poor credit history such as missed mortgage payments it will be more difficult to get a good remortgage quote. Often lending institutions see poor credit histories as riskier. Therefore to compensate the increased risk they charge a premium of higher interest rates. This may be exacerbated by recent problems in the US sub prime mortgage industry. An increasing number of defaults are discouraging firms from making loans to the risky sector of the market.
1. How much deposit can you secure? If you are able to save a reasonable % of the cost of the house then you have a much better chance to be able to secure a good remortgage deal. In the UK house prices have risen significantly in recent years. Therefore it is a particularly good time to remortgage. If you bought a few years ago, the % of the loan to value of the house decreases.
2. Be careful of Teaser Deals. Teaser deals are when for the first year or two the remortgage quote offers a very attractive introductory rate. Usually these will be interest only remortgage payments. However after the time period has elapsed the mortgage rate can jump to nearly double. Make sure you would be able to afford the highest mortgage rate. Also it is worth looking at whether there are exit clauses; will you be penalised for leaving early?
3. Shop around. There are mortgage dealers who specialise in remortgage quotes for lenders with bad credit histories. A good mortgage broker should offer impartial advice and suggest the best deal for you.
4. Is it possible to check your credit history. It is worth checking your credit history to make sure there are no obvious errors, it can happen.
5. Avoid more bad Credit point in Future. If you miss a payment, or struggle to meet payments in the future try to explain beforehand to the bank. They may be able to help, or at least not add to your negative credit rating. Useful tip. – Missed a credit card payment by mistake. Write to your bank saying it got lost in the post, often they will give you benefit of doubt. Long term use direct debit to pay minimum debt.
R. Pettinger manages a site about Mortgages in the UK. This site includes a guide to different types of mortgages and advice about getting Best Remortgage quote in UK mortgages For more information about mortgages and mortgage refinance see: http://www.ukremortgage-quotes.co.uk/