The mortgage lender will probably use one of the two major credit reference agencies, Experian or Equifax.

What you must be clear on is that there is very little chance of you being "cleared" if you have any history of poor credit. The problem is more for people who are wrongly labeled as having bad credit.

Still, you should keep in mind that it's very important not to apply to mortgage lenders who'll automatically reject you, because every time you're turned down - regardless of the reason - this will show on your credit rating and further damage your chances of getting a mortgage.

So, what is the way out if you have bad credit ratings but badly need a mortgage?

First of all, before having your credit ratings checked by the lender, ask an independent specialist bad credit mortgage adviser. They will know immediately which currently available deals are best for you. They will also know how likely you are to be accepted by the lender. So you will be able to avoid the rejection spiral.

The best way to find this type of professional is by word of mouth recommendation.

Whatever you decide to do, just make sure that you shop around as there's a big market out there.

If it is found out that your chances of getting a mortgage are low, consider a bad credit remortgage as a variant.

What is it?

A bad credit remortgage is a remortgage deal which will help you if you have a bad credit rating – either because you are currently having some money problems, or because you have had some financial difficulties in the past and have been left with a poor credit rating.

You may ask why choose a bad credit remortgage instead of going to another lender?

You should leave behind any illusions. If you have had problems with credit or debt in the past, you may find it difficult or even impossible to get a mortgage from a regular high street lender. In this case, a bad credit remortgage offers the best solution.

An increasingly popular choice, bad credit remortgaging allows you to borrow against the equity in your home to raise some cash or to pay off any debts you might have, and then to repay it all through your mortgage – usually at a much lower interest rate than previously. Or you can remortgage to reduce your monthly payments – this usually means extending the term of your mortgage.

Either way you choose, the end result should be a more manageable monthly repayment, allowing you to get your finances under control.


The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.