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Getting A Bridge Loan With Adverse Credit

Updated: Dec 20, 2022

Whilst getting rejected for a loan may be the case with credit cards or mortgage applications when applying with adverse credit, this isn't usually the case when applying for a bridge loan.

Bridge loans are secured against your property. Unlike a mortgage or credit card, bridging finance is not granted on the basis of your income, strict affordability tests or forensic analysis of your bank accounts and credit history.

Your exit strategy is the essential factor a bridge lender will take into account - They will lend you the money if you have an asset/property to sell which will cover the loan and enable you to pay it back.

As a UK bridge finance specialist, Accelerated Finance has put together this guide to steer you through all the ins and outs of bridge loans with bad credit.

The Following Topics Are Covered

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

Adverse Credit is not uncommon and can be for a number of reasons for example a property being repossessed or mortgage arrears in the past.

Generally, it can be a challenge to secure a competitive mortgage in these circumstances, but working with Accelerated Finance who is a specialist bridging broker and has access to over 30 lenders offering flexible products can support you through the process.

If your history of bad credit does not directly affect your exit strategy, lenders can see beyond the following common issues:

  • A low credit score

  • No credit history

  • Late payments

  • Missed mortgage payments

  • Payment defaults

  • CCJs

  • IVAs

  • Debt management Schemes

  • Payday Loans

  • Repossessions

  • Bankruptcy

Is My Exit Strategy More Important If I Have Bad Credit?

Lenders are concerned with how their loan will be paid back after the term finishes which is why having a strong exit strategy and a higher deposit will reduce this risk to the lender

  • There are only some lenders that will accept non-standard methods of repaying a debt for example through an investment vehicle such as stocks and shares or inheritance.

  • If the security is in a higher-value area and it's easy to sell or let out the property, this will reduce the lender's risk

  • If you are taking out a bridge loan for commercial purposes a business plan will be crucial

  • When funding a development, whether it is a light refurbishment or a heavier build, your experience will play a role to a lender

  • Most lenders will look for a deposit of between 30% to 35%. If you have adverse credit, the higher the deposit you put down the better the rates available.

Are Credit Checks Required for Bad Credit Bridging Loans?

Indeed it is. Lenders will always run a search but are more likely to look further into serious credit issues.

With clean credit, the interest rate offered as expected will be better, but it's still possible to obtain a loan with adverse credit.

You will be able to check your current credit score here

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

Having both a security with a second charge on it and a bad credit history can make things even more complicated and pose significant risk factors. Second Charge bridging is a specialist product and finding a niche lender who can offer this loan and is able to accept low credit is unusual.

We recommend using a whole of a market specialist broker who can assess the current circumstances and provide a competitive product. Give Accelerated Finance a call on 0208 952 5280

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

Many businesses can have adverse credit due to for instance ongoing commercial disputes or a history of late payments. Lenders will not necessarily reject a commercial company application but will need to mitigate their risk so in some instances might require additional security.

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

Bridging Finance does not have any set-in-stone restrictions and is generally used in instances when there is a fast property transaction needed. Some lenders will have policies about the property types, for example, a flat above a shop or the current condition of the property before issuing terms.

If want to get a bridging loan (with poor credit) to purchase a property you intend to let out, there are lenders who will accept both your loan and Buy to let (BTL) mortgage application.

This is referred to as a 'bridge to let agreement'.

Further Reading


This article is intended to provide a general understanding of the topic. The contents should not be treated as advice.

Accelerated Finance Limited only considers applications for commercial or investment properties. Accelerated Finance Limited is not regulated by the financial conduct authority and only provides unregulated loans via our network of lenders. Your property is at risk if you fail to make payments on a Mortgage Contract.

Please note that Accelerated Finance Limited and its employees do not give financial advice or recommendations on any product.

Bridging Loan
Bridging Loan

Author: Aakash Nagrani - Director 

Aakash Nagrani Author
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