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Do I Need a Good Credit Score to Get an Equity Release Mortgage?

Do you have a low credit score and are wondering if you can still get an equity release mortgage? Don't worry, you can still contract a capital release plan even with a low credit score. Lenders who release capital check your credit report, but it is not the most important factor. It will not affect the amount of capital you can release. However, it will influence your chances of being accepted.

You can use our capital release calculator to find out the maximum amount you can release. At OnlineMortgageAdvisor, we understand that everyone's circumstances are different. That's why we only work with expert brokers who have a proven track record of obtaining mortgage approvals. Book a call and an expert broker will call you at any time you prefer, within 24 hours. If you have a low credit score due to misdemeanor crimes (maybe you didn't make a payment here and there), you'll normally still have a good chance of being accepted for capital release.

You can use the released capital to pay off any unsecured personal loans, overdrafts, auto finance agreements, and credit cards as long as they are not insured on your property. As long as you manage debts effectively, they should not influence your request for capital release, although if you are in default, some lenders may expect you to use some of the money released to pay off the debt. It may be more difficult to get approved if any of your current debts are related to your home. Your new lifetime mortgage agreement should be the only secured debt on your property, so if you still have a current mortgage balance or a secured loan, you may not be eligible for capital release. In some cases, you may be able to use the capital you release to liquidate it, although this will often require the involvement of a lawyer and may not be possible with all lenders. It is vital for all borrowers to check their credit report for any errors that may be affecting their rating and contact the appropriate credit reference agency to eliminate any errors.

Likewise, check that any previous financial ties (for example, ex-partners who have since moved) have been broken so as not to be linked to someone else's poor credit rating. It's important to familiarize yourself with the information the lender will be looking for and to take action if you notice any improvements. If you have any CCJ, for example, now might be the time to resolve them. Head to our credit reporting center to get started. This is another crucial step for borrowers who have a lackluster credit history, as a specialized broker will know exactly what to do to give your application the best chance of being approved.

They'll be able to advise you on your credit rating and what it could mean for your application, and they can work with you to identify any areas you need to focus on in advance. They will be available to manage your request at every step of the process and address any questions you may have. Most importantly, they'll know which providers to turn to based on their unique circumstances. Not all lenders will be willing to hire someone with a poor credit history, especially if the reasons are very serious. That's why it's vital that you do your research to find out who is most likely to accept your request and avoid the possibility of it being rejected, and a broker can use their contacts and industry knowledge to find the right provider for you. Keep in mind that capital liberation is a niche product and not all lenders operate in this area, especially traditional or high street lenders.

You may need to look for smaller specialized providers to serve. This is because remortgages are a more traditional form of financing and lenders should be sure that you won't default on your payments, but a low credit score may indicate that this is more likely to be the case. As such, you will be considered a greater credit risk and could face less favorable conditions, and you may be turned down completely, especially if you go to a lender on the main street. Remortgaging to free up capital may not be impossible, although you may find that an interest-only retirement mortgage is a better alternative. We guarantee that we'll approve your mortgage where others can't or we'll give you 100 £*.

You don't have to make any repayments so it won't influence your credit report; however, your credit will still be checked which will always cause a temporary drop in your credit rating. But don't worry; this won't last long and shouldn't affect any future credit applications you make. Lenders with...

Nigel Cook
Nigel Cook

Coffee expert. Hardcore social media fan. Wannabe tv junkie. Amateur web fanatic. Incurable internet scholar. Infuriatingly humble travel trailblazer.

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