If you had an impaired credit record (you may have previously been declared bankrupt or received a County Court Judgement) and took out a sub-prime mortgage in the past, you are likely to be paying a higher interest rate than a mainstream mortgage as you represented a higher risk to the lender. But the intention of sub-prime mortgages is rehabilitation. If you have been successfully making your monthly mortgage repayments for a number of years, and you have managed to build up sufficient equity in your property, when you come to remortgage it will make it more likely that you will be able to access a standard mortgage deal.
But do bear in mind that, as many lenders have pulled out of the sub-prime mortgaging market, if you have not repaired your credit rating that could make it difficult, or perhaps even impossible, for you to remortgage.
Source: yourmortgage.co.uk
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