Bridging Loans with Bad Credit — Can You Still Get Approved?

Can You Get a Bridging Loan with Bad Credit?

Yes — and this is one of the key advantages of bridging finance over traditional mortgages. While mortgage lenders place heavy emphasis on your credit score and history, bridging lenders focus primarily on the property being used as security and the strength of your exit strategy.

This doesn't mean your credit history is irrelevant. Lenders will still review it, and serious adverse credit (such as recent bankruptcy or very high-value unsatisfied CCJs) may limit your options or increase your rate. But many bridging lenders will consider applications with CCJs, defaults, missed payments, and even IVAs — provided the deal makes sense.

The key difference is in how risk is assessed. A mortgage lender asks: 'Can this person make monthly payments for 25 years?' A bridging lender asks: 'Is this property worth enough, and will the exit strategy work?' Your credit history is relevant to both questions, but far less central to the second.

What Credit Issues Can Be Considered?

County Court Judgements (CCJs): Most bridging lenders will consider satisfied CCJs regardless of age. Unsatisfied CCJs are more challenging but still possible, particularly if they are small in value or the LTV is conservative.

Defaults: Both satisfied and unsatisfied defaults are widely considered. The number, recency, and value of defaults will influence the rate, but they are rarely a deal-breaker on their own.

Missed payments: Occasional late payments on credit commitments are common and generally not a significant issue for bridging lenders. Multiple recent missed mortgage payments are viewed more seriously.

IVAs and debt management plans: These can be considered, particularly if the IVA is completed or close to completion. Active IVAs with significant remaining balances are more difficult but not impossible.

Bankruptcy: Most lenders require discharge for at least 1 to 3 years. Some will consider recently discharged bankrupts if the LTV is low and the exit is strong.

What Rates Will You Pay with Bad Credit?

Adverse credit bridging rates typically range from 0.75% to 1.5% per month — higher than clean-credit rates but still far more competitive than unsecured borrowing options available to people with poor credit histories.

The premium you pay depends on the severity and recency of your credit issues, the LTV (lower is better — always), the quality of your exit strategy, and whether the bridge is regulated or unregulated (unregulated lenders tend to have more flexibility on credit criteria).

On a £200,000 bridge at 0.85% per month over 12 months, the monthly interest is £1,700 and the total interest cost is £20,400. With a 2% arrangement fee, the total cost comes to £24,400. While not cheap, this may be the only way to access the property deal you need — and the profit from a successful refurbishment or development can far outweigh the bridging cost.

Tips for Getting Approved with Adverse Credit

Keep your LTV as low as possible. The more equity or deposit you can bring, the more comfortable the lender is — regardless of your credit history. Below 60% LTV opens the most doors.

Prepare a watertight exit strategy. With adverse credit, the exit becomes even more important. A confirmed sale or a mortgage DIP from a lender who accepts your credit profile is ideal.

Use a specialist broker. A broker who understands the adverse credit bridging market can match you to lenders who will accept your specific credit profile, avoiding unnecessary declines and wasted time.

Be upfront about your credit history. Don't try to hide adverse credit — lenders will find it during their checks. Being transparent from the start builds trust and allows your broker to position the application correctly.

Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.