Published 6th December 2017
Almost every mortgage lender out there offers a remortgage facility, where homeowners on higher rates elsewhere can switch to one of their products. The high street lenders like Halifax, Santander, and HSBC target good, clean credit customers as they want to limit the risk profile, and as such incentivise customers with good credit scores to take their deals by offering quick, cheap (often free) service, free valuations, free legal processing, cashback, cheap banking, preferential rates and more.
Those of us that may not qualify for a top rate lender due to income or credit issues need not worry however, because there’s often still at deal to be had with lenders like Kensington, Aldermore, and Precise – especially at the moment with rates being so low. These low rates can’t last forever though (Matt has written an article about this), so acting sooner rather than later could be the best option.
Santander offer direct and broker exclusive deals, so reviewing both is important. At the moment, their products are very competitive and they tend to offer great remortgage services, along with free valuations, and free legal fees. The broker arm used to be known as ‘Abbey’ as this brand remained after Santander bought Abbey national, but has since re-branded to Santander in the summer of 2013. They consider a range of incomes, but are quite tight on credit scoring and so if you have any adverse credit they are not usually likely to approve you.
Halifax, like Santander offer broker and direct exclusives, with fee free remortgage services. They consider borrowers with a range of incomes and are good on different types of property where other lenders would decline. Again though, they tend not to approve customers with credit history issues, especially if they were within the last 3 years.
Nationwide are a huge force when it comes to mortgages, priding themselves on the fact they are traditionally a building society and run services for their members (customers), not shareholders. Their rates are almost always competitive compared to the rest of the market and they do consider applicants from a range of circumstances, however again like most high street lenders, if you have poor credit you’ll have little chance of approval.
HSBC only deal through direct channels at the present time, but are still worth considering as they occasionally have some cracking rates available. They can be very strict when it comes to who they will approve and have stringent criteria.
You may not have heard of Kensington before, but in the broker world they are an important lender, offering bad credit mortgages at surprisingly low rates. They consider most applicants who have more historical adverse credit and are very flexible when it comes to missing payments and other account conduct – where lenders on the high street would decline. They don’t credit score, they credit search (see here for distinction between the two) ADD LINK. They also consider buy to let applications.
Like with Kensington, you may not be aware of Aldermore. They have similar criteria to Kensington and are more flexible than the high street banks, whilst still offering competitive rates. Aldermore don’t credit score either, and a human reviews each case following a credit search to establish eligibility – avoiding the frustration of the ‘computer says no’ effect.
Precise are another more flexible lender who consider adverse credit up to 85% LTV (through our exclusive channels). Unlike Kensington and Aldermore, they do perform their own credit score, and you’ll have to pass in order to be eligible. Precise offer 2 options – a ‘prime’ product range and an ‘almost prime’ product range. Which you’ll have access to depends on the severity of your credit history, where the prime range is better priced.
Other lenders across the whole market
The mortgage market has a huge number of different lenders to those mentioned above, and to define them all individually would be a very time consuming task – but we’re working on it!
If you are considering any of the lenders above, or just looking for info because you’re not sure which lender will consider your application, please get in touch and one of our experts would be happy to help.
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