Anyone who has tried to get a mortgage refinanced recently will know that the options are limited and expensive for those with a bad credit rating. In fact, if you are below average in this area - the chances are that you will not be able to refinance a loan on a dog kennel, let alone remortgage a home.
Whatever garbage may be being thrown about by the governments and banks about recovery and health in the banking sector is just that - garbage. Whether we like it or not, and despite massive efforts on behalf of the government to prevent a market correction from happening one thing is pretty clear - we are returning to the "good old days," of due diligence to make certain that whoever the banks are lending to are in a position to repay the loan. Which pretty much means that of you need to refinance a loan with bad credit, you are going to be SOL, unless you can find a "non-traditional," lender.
Finding financing with good credit is bad enough, as most mortgage providers are requesting a 30% deposit or equity in the property as collateral for any loans provided. the real estate market is still headed downwards price-wise, British property prices are still crashing hard, no matter what the newspapers might have you believe. US property prices have already corrected back to 2003 levels and show no signs of stabilizing, unless you call buying distressed homes at 20 cents on the dollar stabilizing. We still have a rocky road to recovery in front of us.