Adverse Remortgage

An adverse remortgage or adverse credit remortgage is a mortgage refinance contract to an a mortgage borrower with adverse credit. An adverse remortgage allows these borrowers to refinance even with an adverse credit rating. An adverse remortgage borrower can have court judgements, defaults, or mortgage arrears and still obtain refinancing with an adverse remortgage. Adverse remortgage loans are available in the US and UK where as many as 25% of prospective borrowers may need to apply for adverse remortgage based on a poor credit history. Adverse remortgage loans are offered at rates above conventional remortgages. Sometimes called “bad credit mortgage refinancing” adverse remortgage loans have become more widely available as the secondary market for sub-prime residential mortgages has expanded during the early 2000s.