You remortgaged 2 years ago and whilst there was a small County Court Judgement (CCJ) and a default sitting on your credit record the lender took a pragmatic view and you got a good rate. So for the last 2 years you have been paying the mortgage nicely but the deal is now coming to an end and you are looking at quite a monthly uplift in cost by reverting to the lender’s standard variable rate.

Unfortunately, in the current climate you are potentially in for a shock if you wish to remortgage again as many lenders have now adopted a strict risk averse regime and until any credit record issues are resolved you will not be considered. Lenders wish to see the credit file clear before they lend and some pre-emptive work on your part will therefore pay dividend.

What should you do?

1. Get corrections amended on your file if any of the detail is incorrect or out of date.

2. If you have paid off the CCJ then get a satisfaction note.

3. Clear up any defaults that may still show as outstanding.

One small mishap may be able to be talked through with a lender, but two looks like carelessness and lenders simply aren’t interested.

Posted in Buy-to-let, First Time Buyers, Mortgages, Next Time Buyers, Remortgaging