Bad Credit Remortgage Case Study: Arrears, Default and Debt Cleared in 6 Weeks
Arranging a bad credit remortgage often feels impossible once arrears and defaults appear. This case study follows a client facing mortgage arrears and a credit default. Orchard Mortgage Solutions stepped in and found a genuine solution quickly. Within six weeks, the client’s £284,000 remortgage completed, clearing arrears, a default, and unsecured debt.
At a glance
- Situation: three months of mortgage arrears £2,886, a £1,274 credit card default, and other unsecured debt
- Loan: £284,000 remortgage at 70% loan-to-value
- Deadline: existing mortgage term ending within weeks
- Solution: a bad credit remortgage covering arrears, default, and consolidation
- Timeline: completed in six weeks from first enquiry
- Result: one affordable monthly payment and a clean credit file going forward
The Client’s Story: Why a Bad Credit Remortgage Was the Only Way Forward
Our client had built a stable income but faced serious financial setbacks. Missed mortgage payments left three months of arrears, totalling £2,886, on the file. A separate £1,274 credit card default made high-street lending options disappear overnight. Meanwhile, their current mortgage term was due to end within weeks. Consequently, they needed a bad credit remortgage that could complete quickly. They wanted a broker confident enough to take the case on. As a result, the client came straight to Orchard Mortgage Solutions for help.
How Orchard Mortgage Solutions Secured This Bad Credit Remortgage
Our advisers began with a full review of the client’s financial history. We identified the exact cause of the arrears and the credit default. This detail mattered because specialist lenders assess adverse credit individually, not automatically. Therefore, we approached lenders who understood complex, real-life financial circumstances. We presented a clear, honest case explaining the client’s improved situation. As a result, we secured a £284,000 bad credit remortgage at 70% loan-to-value. This reflected a property value of approximately £406,000 at that loan-to-value. The new loan cleared the mortgage arrears and the credit default entirely. It also consolidated unsecured loans and credit card balances into one payment.
“This case shows exactly why cases like this need specialist knowledge, not a quick decline. We looked at the full picture, not just the credit file.” — Stephen Watney, Mortgage Adviser, Orchard Mortgage Solutions
Timeline to completion
Within the first week, we mapped out every arrears payment and balance owed. By week two, we had matched the case to the right specialist lender. The application, valuation, and underwriting stages followed over the next three weeks. Legal work and completion were finalised in the sixth and final week.
The Outcome: A Fresh Financial Start in Six Weeks
The remortgage completed just six weeks after the client’s first enquiry. The £284,000 remortgage cleared £2,886 of arrears and the £1,274 default. The client now has a single, manageable monthly mortgage payment instead. Furthermore, their credit file can now begin to recover and improve. This outcome shows what’s possible when lenders see the full picture. Additionally, it highlights the value of working with an experienced broker.
Bad Credit Remortgage FAQs
Q) Can you remortgage with mortgage arrears in the UK?
Yes, several specialist lenders will consider a bad credit remortgage despite recent arrears. Each lender sets its own criteria, so professional advice matters here.
Q) Can I get a remortgage with a default on my credit file?
Yes, many lenders assess defaults individually rather than applying automatic rejections. The size, age, and reason for the default all affect your options.
Q) How long does a bad credit remortgage take to complete?
Timelines vary, but this case completed in just six weeks overall. Straightforward paperwork and responsive lenders usually help cases move fastest.
Q) Can a remortgage consolidate credit card and loan debt?
Yes, a remortgage can combine unsecured debts into one mortgage payment. This can lower monthly costs, though it may extend your total term.
Why Choose Orchard Mortgage Solutions for Your Bad Credit Remortgage
Every bad credit remortgage case is different, and generic advice rarely helps. We work with clients across the UK, not just one local area. Our knowledge of specialist lending panels helps us place difficult cases successfully. If you’re managing arrears or defaults, our debt consolidation remortgage can help. For free, independent guidance on managing debt, visit MoneyHelper today. However, every case is unique, so speak with our team directly first. Contact Orchard Mortgage Solutions today to discuss your bad credit remortgage options.
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