Your current mortgage deal is ending, the monthly payment could rise, and your credit history is not as clean as you would like. That is when the search for a fixed rate remortgage poor credit options can feel particularly stressful. The good news is that poor credit does not automatically mean you cannot remortgage or secure a fixed rate. It does mean the right lender, timing and preparation matter more.
A fixed deal can bring welcome certainty when household costs are already difficult to predict. But before choosing one, it is worth understanding what lenders will look at, what affects the rates available, and whether remortgaging now is genuinely the right move for you.
Can you get a fixed rate remortgage with poor credit?
In many cases, yes. There are specialist lenders in the UK that consider applicants with missed payments, defaults, CCJs, debt management plans, IVAs, previous bankruptcy and other adverse credit issues. Their criteria vary considerably. One lender may decline a recent default, while another may accept it if it has been satisfied or happened before a particular date.
The detail matters. Lenders will usually consider what happened, when it happened, how much was owed, whether the debt has been repaid and how your finances have been managed since. A single missed mobile phone payment two years ago is viewed very differently from several recent missed mortgage payments.
A fixed rate does not change those affordability and credit checks. It simply means the interest rate and your monthly mortgage payment are set for an agreed period, commonly two or five years. For many people, that predictability is the main attraction.
Why a fixed rate may be useful
When you remortgage onto a fixed rate, you know what your mortgage payment will be for the length of the deal, provided you do not change the mortgage balance or term. This can make budgeting easier, particularly if you are rebuilding your credit and want to avoid unexpected changes in your largest monthly outgoing.
It can also give you breathing space. Rather than worrying about every movement in the Bank Rate, you can focus on keeping all credit commitments up to date, reducing unsecured borrowing where possible and strengthening your position for the next remortgage.
However, certainty comes with trade-offs. Fixed-rate mortgages often have early repayment charges during the initial deal period. If you expect to move home, receive a lump sum, or want the flexibility to overpay heavily, check the terms carefully. Many fixed products allow limited overpayments, often up to 10% of the mortgage balance a year, but this is not universal.
What lenders assess when you have adverse credit
Specialist lenders do not lend without checks. They look for evidence that the mortgage is affordable now, not just at the point your credit problems occurred. Your income, regular spending, existing borrowing and mortgage payment history all form part of the picture.
Your loan-to-value, usually shortened to LTV, is also important. This is the percentage of your property’s value that you need to borrow. For example, if your home is worth £250,000 and your mortgage balance is £200,000, your LTV is 80%. Lower LTVs can open up more options because the lender is taking on less risk.
The following factors can affect which fixed rate remortgage deals may be available:
- How recently your credit issues occurred and whether they are settled
- The number and value of any defaults, CCJs or missed payments
- Your recent mortgage conduct, including any arrears
- Your income type, especially if you are self-employed or have variable earnings
- The amount of equity in your home and the size of the loan you need
No two credit files are identical. This is why an automated comparison result or a quick high-street decline should not be treated as the final answer.
Start with your current lender, but do not stop there
If your existing lender offers you a new rate without a full affordability assessment, known as a product transfer, it may be worth considering. This can be a practical route if your credit has worsened since you took out the mortgage, because you may not need to go through a new lender’s underwriting process.
That said, it is not always the cheapest or most suitable option. Your current lender may not offer the best rate for your circumstances, and a new lender could provide a better fit even after fees are considered. Staying put may also leave you on a deal that does not support your longer-term plans.
A proper comparison should look beyond the headline rate. Arrangement fees, valuation fees, legal costs, early repayment charges on your current deal and the total cost over the fixed period can all change the outcome. A lower rate with a substantial fee is not automatically better, particularly on a smaller mortgage balance.
Preparing for a remortgage application
You do not need a perfect credit score before speaking to a specialist adviser. In fact, waiting too long can create pressure if your existing fixed deal is close to ending. It is usually sensible to begin reviewing options several months before the deal expiry date.
Before applying, check your credit reports with the major credit reference agencies. Look for incorrect addresses, accounts that should show as settled, or errors in payment history. If something is wrong, raise a dispute with the lender or agency. Do not assume a mistake will be ignored during underwriting.
Try to keep all payments current in the months leading up to an application. Avoid taking out new credit unless it is necessary, and be cautious about making several mortgage applications yourself. Multiple hard searches in a short period can complicate your file and may not tell you whether a lender is genuinely comfortable with your circumstances.
Gathering documents early also helps. Lenders may ask for payslips, bank statements, proof of benefits where relevant, identification and evidence of any credit issue that has been settled. Self-employed applicants may need accounts, tax calculations and tax year overviews. Being open about the full situation from the start helps avoid avoidable delays later.
When remortgaging may not be the best immediate answer
Sometimes the strongest advice is to pause rather than rush. If you have had very recent mortgage arrears, a newly registered CCJ, or you are currently in a debt solution, your choice of lenders could be limited. Taking a high-cost deal simply to avoid your lender’s standard variable rate is not always the right decision.
There may be other routes to consider, such as a product transfer, a shorter fixed period, reducing the borrowing amount, or waiting until a default becomes older and your recent payment record is stronger. The right choice depends on the cost of waiting, your current lender’s options and your need for payment certainty.
It is also vital not to consolidate unsecured debts into your mortgage without careful thought. Lower monthly payments can be appealing, but spreading short-term debt over many years may increase the total amount repaid and puts your home at risk if you cannot keep up with mortgage payments.
Specialist advice can save time and unnecessary setbacks
Poor credit can make a remortgage feel personal, especially if you have already been declined. But lenders assess risk against criteria. They are not making a judgement about you or your future.
A specialist mortgage adviser can review your credit history alongside your income, property value and existing mortgage, then identify lenders whose criteria are more likely to fit. This can reduce the risk of unsuitable applications and give you a clearer view of your realistic options, including the likely costs of fixing your rate.
Adverse Guru helps people who do not fit a straightforward lending box, with honest guidance throughout the process. If your current deal is ending or you are worried that poor credit will hold you back, book an initial mortgage discovery call. A calm conversation about the facts can be the first practical step towards a more secure mortgage payment.