Are Bad Credit Bridging Loans Available to Me?

Adverse Credit Bridging Loan

Bridging loans are a uniquely flexible short-term facility secured against eligible assets or property and issued at competitive rates. Unlike conventional loans or mortgages, poor credit bridging loans are widely available for applicants with an imperfect credit history.

Bad credit bridging loans work in exactly the same way as their conventional counterparts. Importantly, adverse credit-bridging loans can be arranged with equally competitive interest rates and borrowing costs.

With bridging finance, what matters most to the lender is the applicant’s capacity to offer viable assets to cover the costs of the loan and repay the balance in full at a later date. If you can present a convincing case and own assets of high enough value to secure the loan, you have a strong chance of qualifying for a bridging loan, irrespective of the kind of adverse credit issues that would normally count you out of the running on the high street.

Which credit issues are considered acceptable by bridging lenders?

The more flexible bridging lenders are willing to overlook the vast majority of common credit issues; eligibility is determined almost entirely on the basis of the assets provided as security for the loan and the viability of the applicant’s exit strategy.

If you present a strong application that fulfils these two main requirements, your lender may be willing to overlook such credit issues as:

  • No credit history.
  • Low credit score.
  • Late payments.
  • Missed mortgage payments.
  • Defaults.
  • CCJ.
  • IVA.
  • Debt management schemes.
  • Repossessions.
  • Bankruptcy.
  • Payday loans.

Each of the above constitutes an additional risk factor in the eyes of the lender. But if you can convince them that you are in a comfortable position to repay your loan in full and on time, your application will be given fair consideration.

Should I use a specialist poor credit bridging loans broker?

Seeking support from a broker with extensive experience in poor credit bridging loans is essential. This is for two reasons, the first of which is the importance of presenting a credible and convincing application. Your broker will provide you with the complete support you need to maximise your likelihood of qualifying for a competitive loan.

Secondly, many of the market’s best bridging lenders offer their services exclusively via broker introductions. This means that the only way to gain access to the services they provide is with the help of an experienced broker.

Can I get a bridging loan with no credit check?

Generally speaking, the answer is no; all bridging finance applications include a mandatory credit check as standard. But this is not the same ‘yes or no’ credit check conducted by traditional banks when processing loan applications.

Nor does this credit check have to leave a mark of any kind on your credit report; your broker can ensure a soft credit check is performed to preserve your credit score.

Adverse credit need not be an issue if you pass the main eligibility checks for bridging finance: acceptable assets to secure the loan and a viable exit strategy.

What else impacts eligibility for bridging finance?

Knowing what lenders look for in an applicant can pave the way for getting the poor credit bridging loan you need at a competitive rate of interest.

Examples of these include:

  • Evidence of a workable exit strategy.
  • Assets to secure the loan with a value that exceeds the loan amount.
  • A detailed and convincing business plan.
  • Company accounts and financial projections.
  • Evidence of relevant experience and an established track record.
  • Willingness to provide a deposit (though usually not required).

In all instances, your broker will provide the advice and support you need to present a convincing case to the market’s most accommodating lenders.