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Bridging Loan With Bad Credit

  • Expert Advice on bridging loans for bad credit
  • Borrow £25k – £500m
  • Speak with our master brokers to find a great bridging loan offer even with a bad credit
 

Get in touch for a free, no-obligation appointment about how we might be able to help you.

Bridging finance broker

What is a Bridging Loan?

A bridging loan is a form of short-term finance used to secure property sales or raise funds for renovation work. Most property finance is designed for the long term and involves early repayment fees, but bridging loans are different.

Unlike a mortgage that takes weeks or even months to complete, a bridging loan can be set up much faster.

Bridging loans are also repaid at the end of the loan term, as opposed to being repaid through monthly repayments as with more common forms of finance. At the end of the term, the interest is rolled up and repaid with the outstanding loan balance – usually from the proceeds of a house sale.

Bridging Loan With Bad Credit

You may still be eligible for a bridging loan even if you have poor credit but wish to secure a bridging loan for a property or project. You will first have to contact a specialist broker, like Sort Finance, who will advise you on what documents you need to arrange and prepare you for the application process. You need to be as open as possible about your financial situation with the adviser.


Your adviser will determine the likelihood of securing the bridging loan with bad credit and help you prepare the application. This will have to include a nominated property to secure the loan against and an exit plan. In the case of a new build or renovation, the property should sell soon after completion, which might be considered a satisfactory exit strategy.

apply for Commercial-Mortgage loan

Looking for a Bridging Loan for bad credit, Sort Finance can help.

What Makes Bridging Loans More Flexible For Bad Credit?

The lender is concerned with the borrower’s credit rating with a mortgage. This happens because the loan is calculated over the long term, and individuals with poor credit histories are considered more likely to default on payments. To eliminate risk, mortgage lenders will often check credit scores.

For bridging finance, however, a lender might be less concerned with credit scores since the security of the loan is tied to a property (in contrast to unsecured loans), and the repayment depends on the exit strategy rather than regular repayments over time.

Bridging Loans brokers

Can a Bridging Loan Improve Your Credit History?

The short answer is that it could. A strong credit file may not be necessary for securing a bridging loan with bad credit, but if you successfully arrange one and repay it on schedule, it could improve your credit history.

You will not need a strong credit score to secure a bridging loan if you have a mortgage on a property; however, it will help you to be approved. You can improve your credit score by paying off your debts and credit cards on time using lines of credit wisely, always paying the full amount off on time, or making above-minimum payments.

Risks and Costs

All finance carries some risk both to the borrower and the lender. In the case of bad credit bridging loans, the risks increase, even if it is a bridging loan secured against a property. If you doubt your chances of securing a bridging loan or are unsure about the application details, it’s a good idea to contact a specialist adviser before making any commitments.

Land-Mortgages loan broker

Looking for a Bridging Loan to Finance Your House Purchase? Sort Finance can help.