We introduce an iterative Brinkman penalization method for the enforcement of the no-slip boundary condition in remeshed vortex methods. In the proposed method, the Brinkman penalization is applied iteratively only in the neighborhood of the body. This allows for using significantly larger time steps, than what is customary in the Brinkman penalization, thus reducing its computational cost while maintaining the capability of the method to handle complex geometries. We demonstrate the accuracy of our method by considering challenging benchmark problems such as flow past an impulsively started cylinder and normal to an impulsively started and accelerated flat plate. We find that the present method enhances significantly the accuracy of the Brinkman penalization technique for the simulations of highly unsteady flows past complex geometries.