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Bridging Loan with Adverse Credit

How does an adverse credit history impact your eligibility for a bridging loan? Read on for independent advice about managing a poor credit score during a bridge finance application.

What Are Some Bridging Loan Options With Adverse Credit?

Bridging finance might be a quick and easy way of raising borrowing, but as with any loan, having adverse credit can make the application process a little trickier. Adverse credit loan applications may be more challenging to achieve but with proper support and guidance, you can succeed.

As a UK bridge finance expert, the Revolution Brokers team has compiled this guide to steer you through all the ins and outs of bridge loans with bad credit.

Can I Get a Bridging Loan with a Bad Credit Rating?

You can, but it's vital to consult an independent broker before making an application.

Your exit strategy is the essential factor, so you can find a short-term loan on an interest-only basis with most types of credit issues, especially with a poor credit history.

While some bridge lenders are reluctant to lend an unsecured loan to applicants with an adverse credit history, there are plenty who will be happy to lend provided you can demonstrate a good exit strategy or offer a higher deposit to mitigate the risk factor and offer secured loans options that can feel safer when you borrow money.

  • Property Details
  • Type of loan
  • help Maximum 75% LTV
  • help Maximum 70% LTV
  • help Maximum 70% LTV
  • help Maximum 65% LTV
  • help We will lend against current market value of the asset with vacant possession

  • £7,500,000
    help You cannot exceed the maximum loan available based on the maximum LTV for the corresponding type of property selected above
  • 75%
    help You cannot exceed the maximum LTV available for the corresponding type of property selected above


  • 0
  • help Term should be entered in whole months, to a maximum of 12

  • help Deducted interest is where the forecast interest amount is deducted from the loan on day one.
  • help Serviced interest is where the interest is paid on a monthly basis. If serviced interest is chosen, evidence will be required to show your ability to pay interest when it is due.
  • help This is the standard rate for the property type chosen
  • help You can enter a custom rate below our standard rate for the calculation, but the availability of this rate is not guaranteed
Instant Results
Total security value 0
Gross loan amount 0
Gross LTV 0
Interest rate 0
Term (months) 0
Minimum term (months) 0
Assumed arrangement fee @ 2% (min £2,000) 0
Interest Retained 0
Monthly Serviced Interest 0
Admin fee 0
Indicative day 1 Net loan advance 0

Can I Apply for Bad Credit Bridging Loans in Any Circumstances?

Yes, bridging lenders can offer loans to applicants where any of the below apply:

  • Low credit score or no credit records.
  • Late payments or mortgage arrears.
  • Defaults and CCJs.
  • IVAs and DMPs.
  • Bankruptcy and repossessions.

The lender needs to know you will be able to pay back your personal loans at the end of the term, so will want to see evidence that your exit strategy is sound - such as an agreement in principle if you intend to remortgage, as well as clear proof of the past credit history which can also be a good credit history on your bank account that serves as evidence of your affordability and possibility to return the loan.

Mortgage specialists will help you deter any possibility of acquiring unregulated loans and unregulated finance options that often pose a higher risk when borrowing with many hidden costs that can accumulate over time.

Can a Specialist Bad Credit Broker Help Me Find a Bridging Loan?

Undoubtedly! The business finance broker team works with applicants of all types to negotiate competitive lending with niche providers experienced in bad credit loans.

Is a Credit Check Mandatory for Bad Credit Bridging Loans?

It is, yes. Lenders always need to run a credit check, although they are less likely to look at your credit score for this type of single loan and more likely to look for serious credit issues.

If you have a clean credit record, you will get better interest rates, but it's still possible to secure a loan even with adverse credit history.

What are the Eligibility Criteria for a Bridge Loan?

Lenders will assess your application based on many factors other than your credit report, including:

  • The exit strategy.
  • What security you can offer.
  • How viable your business plan is.
  • Whether you have property development experience.
  • How much of a deposit you have available?

Is My Bridge Finance Exit Strategy More Important if I Have Bad Credit?

The lender will need to know how you will pay them back, which becomes more crucial if you have a bad credit history to contend with.

The more of a deposit, and the stronger the exit strategy, the greater the risk factor is mitigated, and the more competitive the rates you will be offered.

  • Only some lenders accept non-standard strategies. That includes repaying the debt through an inheritance, or an investment, for example.
  • The greater the security in your collateral property, the better. If the property is in a high-value area, and will easily repay the debt, this reduces the lender's risk.
  • A business plan is crucial if you are taking out a bridge loan for commercial purposes.
  • Your property development experience will be a factor in bridging finance to fund development.
  • Most lenders look for a deposit of at least 30% to 35%. However, if you have bad credit, the higher the deposit you can offer, the better the rates and the more likely you are to have your application approved.

Can You Get a Bridging Loan With Bad Credit as a Second Charge?

Having your security as a second charge, and being a bad credit applicant make your application more complicated as both are significant risk factors. Traditionally banks or credit unions might reject applications with bad credit score but this is why bad credit loans were created.

Second charge bridge finance is a specialist product, and so to find a niche lender offering this loan, who is also able to accept low credit applicants is unusual.

In this scenario, your best option is to consult a whole-of-market broker who can assess the circumstances and provide independent advice about the best options available.

Could I Get a Bridge Loan as a Third Charge if I Have an Adverse Credit History?

As with second-charge loans, getting a third-charge bridge loan would be very difficult if you also have bad credit issues to contend with.

This would be a rare circumstance, but give the Revolution Broker team a call on 0330 304 3040 and we'll work through the options with you.

Can You Get a Bridging Loan With Bad Credit for a Limited Company?

Many businesses have adverse credit, often due to commercial disputes or a history of late payments.

Bridging loan lenders won't necessarily reject a commercial company application, but will usually need additional security to mitigate a bad credit borrower's risk.

How Does the Property Type Impact My Bridging Loan Bad Credit History Application?

Lenders do not have any fixed restrictions on what a bridging loan can be used for, although they're more popular for financing fast property purchases.

There are no limits on what sort of property you can buy; although some lenders will have policies about the property types, they consider lower risk.

You can also use this type of loan to purchase a rental property investment, called a bridge-to-let loan.

Is a Non-Status Bridge Loan an Option if I Have Bad Credit?

It could be, but this is usually a last resort since the interest rates are high.

Non-status loans are bridging finances secured at higher interest rates against an asset.

Lenders consider the asset's value and your plans for the loan, but will not decide whether to offer to lend based on your personal income. Therefore, if you have valuable assets such as properties, but have an adverse credit history, this type of loan can be an alternative option.

Can I Get a Bridging Loan Bad Credit History Product if I Have Been Blacklisted?

The term blacklisted in reality doesn't mean much - one bank or lender might decide not to lend to you, but that doesn't apply to any institution apart from that specific lender.

You can have marks on your credit file if you have had issues with your credit, or problems such as CCJs, mortgage defaults, or late payments due to personal circumstances.

However, lenders rely on their policies to decide what bad credit applicants they can accept. Being turned down by one lender does not mean that you won't be able to apply to another.

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