Bridging loans with bad credit
A bridging loan with bad credit is sometimes possible, because specialist bridging is underwritten by people looking at the property and the exit as well as your credit file. But adverse credit still affects the price, the maximum LTV and — most importantly — whether a refinance exit is realistic. Strong equity and a sale exit often matter more than a clean record.
Last reviewed: 4 October 2026
BridgingLoans.online is an independent UK introducer operated by PASECOM GROUP LTD (company 17139327, ICO ZC117546). We do not lend and we do not advise. Nothing on this page is a quote, an MCOB illustration or an offer of credit.
Why can bridging work when a mortgage will not?
Mainstream mortgage lenders use automated scorecards and affordability models that can stop a case early. Specialist bridging lenders usually read the whole file. Their main protection is the charge over the property, so if there is plenty of equity and a clear way to repay, credit history becomes one factor among several. If equity is thin, credit quality matters again.
How are different credit problems usually viewed?
| Credit issue | How it is often viewed | What helps |
|---|---|---|
| Older missed payments | Frequently put in context | An explanation and a clean recent record |
| Defaults | Often acceptable, depending on size and age | Evidence of settlement |
| CCJs | Sometimes acceptable, satisfied or not, often at lower LTV | Satisfaction certificates, explanation |
| Mortgage arrears | A specialist conversation | A clear plan, often a sale |
| Discharged bankruptcy or completed IVA | Harder; tightly capped | Time since discharge, strong equity |
| Current bankruptcy | Usually not workable | — |
These are general market observations, not any lender’s rules. Every lender sets its own criteria, and the same history can be treated differently depending on the property and exit.
What is the catch?
Lower LTV and a higher monthly rate are the usual trade-off. The bigger issue is the exit. If the plan is to refinance onto a mainstream mortgage, the same credit problems that stopped a mortgage today may stop the refinance at the end of the term, leaving you with a bridge you cannot repay. A sale exit is often more coherent for borrowers with adverse credit. If a refinance is the plan, ask the broker whether a lender is likely to accept your profile at the end of the term — before you start.
Worked example: a sale exit
Suppose you need £200,000 against a £350,000 property for nine months while you sell another property, using this site’s teaching defaults. With adverse credit the lender might cap the LTV lower or price higher than this — the table only shows the arithmetic.
| Line | Amount |
|---|---|
| Property value | £350,000 |
| Net funds needed | £200,000 |
| Arrangement fee (2% of net, added to the loan) | £4,000 |
| Interest base (net + fee) | £204,000 |
| Monthly interest at 0.85% | £1,734 |
| Total interest (9 months, simple retained) | £15,606 |
| Gross facility | £219,606 |
| Net LTV | 57.1% |
| Gross LTV | 62.7% |
| Total cost of credit (fee + interest) | £19,606 |
Indicative educational example using this site’s calculator method: fee = net × 2%; interest = (net + fee) × 0.85% × months; gross = net + fee + interest. The 0.85% a month and 2% fee are teaching defaults, not our rates and not a quote. Valuation, legal and broker costs are not included.
At a higher rate the cost rises quickly. Try the same figures in the calculator at 1.0% and 1.25% a month to see the difference: on this example, each 0.1% a month adds about £1,836 over nine months. Dated market bands are in costs and fees — guidance only, not our rates.
Does the property type matter more with adverse credit?
Often, yes. When credit is weaker, lenders lean harder on the security, so a standard house or flat in an area with plenty of sales is easier to support than a niche property, a commercial unit or land. Lower LTV gives the lender more room if the property has to be sold, which is why adverse-credit cases are commonly capped lower.
Some specialist facilities exist to repay a mortgage in arrears so that a property can be sold on the open market rather than through repossession. That is secured borrowing at a difficult time: it is not guaranteed, it adds cost, and if the property is your home it is likely to be regulated. If you are in arrears, speak to your lender and to free debt advice services as early as possible as well as to a regulated broker.
What should I do before I apply?
- Check your credit file so there are no surprises.
- Write a short, honest explanation of each issue and what has changed.
- Gather evidence of settlement for defaults or CCJs.
- Be realistic about the exit — a sale is often stronger than a refinance.
- Never hide anything: underwriters will see it, and non-disclosure can end a case.
Related: regulated and unregulated bridging, and exit strategies.
Is this regulated or unregulated bridging?
Occupancy is the legal dividing line. If you or a close family member live in, or will live in, the property as a home (the usual test is at least 40% of it), the loan is likely to be a regulated mortgage contract, with affordability checks, consumer protections and usually a maximum 12-month term. BridgingLoans.online is an introducer, not an FCA-authorised broker and not a lender: where occupancy is yes, we pass a complete pack to an FCA-regulated broker, who explains the protections that apply. Investment, commercial, vacant buy-to-let, land and many company or SPV files are often unregulated. Either way the figures here are indicative only and this is not advice or a product recommendation. See regulated bridging and unregulated bridging.
Your home or property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
Indicative estimate only. Not a quote, illustration under MCOB, or offer of credit. BridgingLoans.online is a trading name of PASECOM GROUP LTD (company 17139327, ICO ZC117546), an introducer, not a lender. Email hello@bridgingloans.online.
Last reviewed: 4 October 2026.
FAQs
Can I get a bridging loan with bad credit?
Sometimes. Specialist lenders look at the property, the equity and the exit as well as your credit history. Adverse credit usually means lower LTV and higher pricing, and some histories cannot be accepted.
Will an enquiry leave a hard search on my file?
A decision in principle is often based on a soft search, while a full application may involve a hard search. Ask the firm which it will use.
Can interest be retained if I have bad credit?
Yes. Some lenders prefer retained interest so there is no monthly payment to miss.
Should I mention a CCJ?
Yes. Declare it and explain it. Underwriters will see it, and non-disclosure can stop a case.
Does bad credit stop a regulated bridging loan?
Not always, but regulated lenders must still assess affordability and treat the loan as a home loan, so recent or serious problems weigh more heavily than on an investment case.
Is a refinance exit realistic with bad credit?
It depends on whether a long-term lender will accept your profile at the end of the term. If that is uncertain, a sale exit is often more coherent.
Next step
Use the calculator for an indicative starting point, then enquire if you want an introduction.