Can I Get a Bridging Loan with Bad Credit?
If you’ve been turned down for traditional finance because of a poor credit history, you might be wondering if a bridging loan is still an option. The short answer is yes – it can be. Bridging loans are very different from standard mortgages, and lenders often look beyond your credit score when deciding whether to lend.
Let’s break down how it works and what you need to know.
What Exactly Is a Bridging Loan?
A bridging loan is a short-term finance product designed to “bridge the gap” between buying a property and selling another, or while waiting for longer-term funding to come through.
People use bridging loans for all kinds of reasons, like:
Securing a property quickly (such as at auction)
Carrying out renovation or development work
Managing cash flow while waiting for a sale or mortgage
Typically, these loans run for 6–18 months and are repaid once the property is sold or refinanced.
Bridging Loans and Bad Credit – Is It Possible?
Yes, you can often get a bridging loan even with bad credit. Lenders in this space are usually more interested in the property and your repayment plan rather than your past financial history.
Key things they look at include:
Property value: What security are you offering?
Exit strategy: How will you repay the loan?
Loan-to-value ratio: The lower this is, the better.
If these boxes are ticked, a poor credit score isn’t always a dealbreaker.
Why Lenders May Still Say Yes
Bridging loans are asset-backed, meaning the property itself gives the lender confidence. They care most about whether the loan will be repaid on time, not so much about your credit history.
You’ll stand a much better chance of approval if you have:
A clear exit strategy – for example, selling the property or refinancing
A low LTV – borrowing a smaller percentage of the property’s value
Experience with property development or investment (if relevant)
Tips for Getting a Bridging Loan with Bad Credit
If your credit file isn’t perfect, here’s how to improve your chances:
Work with a specialist broker: Someone like Celtic Finance can access lenders who consider bad credit cases.
Be transparent: Explain any issues upfront rather than letting the lender find them.
Provide a strong exit plan: The clearer and more realistic this is, the better.
Consider extra security: Using more than one property can reduce risk for the lender.
Weighing Up the Pros and Cons
Before going ahead, it’s worth considering both sides:
Advantages:
Quick access to funds
Flexible criteria for approval
Credit history isn’t the main focus
Disadvantages:
Higher interest rates than mortgages
Potential for additional fees
Limited lender options if credit is very poor
How Celtic Finance Can Help
At Celtic Finance, we specialise in arranging bridging loans for all kinds of situations – including bad credit. We work closely with a wide range of lenders to find solutions that fit your needs and timescales, whether you’re buying at auction, developing property, or bridging the gap before a sale.
If you’re unsure where to start, get in touch with our team today. We’ll guide you through the process and help you secure the right finance for your circumstances.
Final Thoughts
Bad credit doesn’t have to be the end of the road if you need a bridging loan. With the right broker, a solid exit plan, and the right property security, you still have options.
Speak to Celtic Finance today and find out how we can help you secure the funding you need.
