How To Get a bridging loan with an adverse credit score?
Secure bridging finance is a flexible short-term borrowing option. It is usually available in most bad credit situations, provided you have a stable way to repay the loan, called your exit strategy.
In this guide, our mortgage advisors team explains how credit reports impact your ability to get a bridging loan and what criteria lenders will consider.
For tailored assistance with your bad credit bridging loan application, give us a call on 0330 304 3040, or email the team at [email protected].
What Bad Credit Issues are Acceptable for a Bridge Loan Application?
The essential factor to remember with a bridging loan is that it is only short-term, and the interest rates are higher than on a mortgage. You usually only pay interest during the term and need an exit strategy to demonstrate how you will pay back the borrowing.
Therefore, bad credit is less of an issue, provided you have a robust repayment plan.
For example, if you plan to remortgage, you might need an agreement in principle since the lender can't be sure whether you will be approved for the mortgage given your bad credit history.
However, if you sell the property or have another viable solution, a bridging lender is more likely to accept your application.
There are bridging loan options available in most bad credit scenarios, from having no credit history through to having repossessions or bankruptcy on your credit report. A lot depends on when the issues occurred, how much money was involved, and how long you have kept your financial affairs in order.
