Bad Credit Remortgage UK | Mortgage Market Overview

A couple of decades ago having bad credit was an exception and only a small number of specialist lenders offered a bad credit remortgage UK borrowers could take. However, the situation has now changed dramatically. Figures from debt charities and other agencies suggest that the UK is now carrying more than £1 trillion of debt and has one of the highest rates of credit card debt in the western world*. This is part of the picture for the bad credit remortgage UK consumers need to be aware of.

The other piece of the puzzle which affects the bad credit remortgage UK picture is the increase in the number of people who are subject to bankruptcy orders. The figure is now in the hundreds of thousands and there are also many people taking out individual voluntary arrangements (IVAs) where they agree on a certain sum to be repaid to creditors within a given period. This is often marketed as an easy way out of debt, though it is anything but easy, as IVAs and bankruptcies stay on a person's credit record for several years, making it difficult for them to get additional credit.

Bad Credit Mortgage Demand

All of this explains the increased demand for bad credit remortgage UK products. Instead of just a few lenders in the sector, there are now several, all of them offering a wide range of bad credit remortgage UK loans. In addition to the specialist lenders, there are also subsidiaries of well known high street lenders, such as UCB Home Loans, the specialist subsidiary of Nationwide Building Society. This means that most lenders can offer a wide range of products depending on your circumstances.

The growth in the number of bad credit remortgage UK offerings provides a good reason to consider changing provider if you have already had a bad credit loan mortgage. After all, as well as the number of lenders, the types of mortgage products have changed as well in the last decade and there may be benefits to switching your deal. With a bad credit remortgage UK consumers can now find products that charge daily interest, that offer flexibility with payments and other incentives such as free legal fees and valuation fees. Getting bad credit remortgage UK product doesn't mean missing out on the perks that other mortgage holders get, though it will mean paying a bit more for your mortgage. However, this need not be forever. Pay your bad credit remortgage UK loan properly and you could have taken the first step to rehabilitating your credit history.

*Source - Bank of England 29th July 2004

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