Can you get a bridging loan with bad credit? Yes, in many cases you can. A bridging loan with bad credit is often possible because lenders focus more on the property used as security and your bridging loan exit strategy than your credit score.
Unlike high street banks, bridging lenders assess risk differently. While credit history still matters, it is not usually the deciding factor.
If you have experienced CCJs, defaults, mortgage arrears or even bankruptcy, you may still qualify for a bad credit bridging loan — provided your deal is structured correctly.
Why a Bridging Loan With Bad Credit Is Different From a Mortgage
A traditional mortgage is heavily based on income, affordability testing and detailed credit scoring. If your credit profile is weak, approval can be difficult.
A bridging loan with bad credit works differently because it is secured lending. The lender’s main protection is the value of the property, not your monthly income.
The most important factor is your bridging loan exit strategy — how you will repay the loan within the agreed short-term period.
This is why many applicants who would struggle with a mainstream mortgage can still secure a bad credit bridging loan.
If you want to understand the full mechanics of how these loans are structured, our guide explaining how bridging finance works provides further clarity.
What Is a Bad Credit Bridging Loan?
A bad credit bridging loan is simply a short-term secured loan offered to someone with adverse credit history. The structure is the same as any other bridging facility, but the lender will price and assess risk slightly differently.
These loans are typically used to:
Purchase property quickly
Buy at auction
Fund refurbishment before refinancing
Prevent repossession
Resolve urgent financial pressure
They are normally arranged for between 3 and 18 months, although terms can vary.
Interest is usually charged monthly, and in many cases it can be rolled up and repaid at the end alongside the capital. This structure reduces reliance on your monthly affordability, which is one reason a bridging loan with bad credit is achievable.
Worried about bad credit affecting your bridging loan?
If you're considering a bridging loan with bad credit, the structure of your exit strategy is critical. A specialist bridging loan lawyer can review your circumstances, assess risk, and explain your realistic options — without obligation. Request a confidential review
The Importance of a Strong Bridging Loan Exit Strategy
Your bridging loan exit strategy is the single most important part of the application.
Lenders will ask one core question: how will this loan be repaid in full?
Common exit routes include:
Sale of an existing property
Remortgage after refurbishment
Development exit refinance
Agreed future funds (such as inheritance or investment release)
If your exit involves selling a property, lenders will review comparable sales and market demand in your area. If refinancing is the plan, they may require an agreement in principle from a future mortgage lender.
Without a credible exit strategy, approval becomes unlikely — even if your credit history is perfect.
How Much Can You Borrow With Bad Credit?
Most bridging lenders will offer up to 70–75% loan-to-value (LTV). Some may stretch slightly higher depending on the deal.
If you are applying for a bridging loan with bad credit, having lower LTV significantly improves your chances. This means contributing more equity or deposit.
Lenders feel more comfortable when:
There is at least 25–30% equity
The property is in saleable condition
The asset is standard and mortgageable
A stronger equity position reduces perceived risk, even if your credit file shows previous issues.
What Types of Bad Credit Will Lenders Consider?
Specialist lenders take a pragmatic view. A poor credit record does not automatically mean refusal.
They may consider applicants with:
CCJs
Defaults
Mortgage arrears
IVAs
Debt management plans
Payday loan history
Discharged bankruptcy
Each case is reviewed individually. The severity, age and context of the credit issues matter more than the headline label.
Fraud markers or ongoing unresolved legal disputes, however, are significantly more problematic.
Does Bad Credit Increase the Cost?
A bridging loan with bad credit may carry a slightly higher interest rate, but pricing depends more on risk factors such as LTV and exit strength.
Bridging finance is already short-term and asset-backed. Because the lender’s primary security is the property, the difference in cost is often smaller than applicants expect.
Costs to consider include:
Monthly interest
Arrangement fee (usually a percentage of the loan)
Legal fees
Valuation fees
Possible exit fees
The key is structuring the loan correctly from the outset. Poor planning — not bad credit — is usually what makes bridging expensive.
Can You Get a Second Charge Bridging Loan With Bad Credit?
Yes, but it is more complex.
A second charge bridging loan sits behind your existing mortgage. This means the bridging lender takes repayment after the first charge lender.
Because this increases risk, lenders will scrutinise:
Available equity
Consent from the first charge lender
Strength of exit strategy
If there are current mortgage arrears, consent can be harder to obtain. In such cases, specialist structuring advice becomes particularly important.
Can a Bridging Loan Help Stop Repossession?
In certain circumstances, yes.
If there is sufficient equity in your property, a bad credit bridging loan can be used to clear arrears and prevent repossession. This allows time to sell the property at full market value rather than under pressure.
However, this is a specialist and sensitive situation. The exit strategy must be robust and realistic.
Understanding the legal structure and risk is essential, which is why many borrowers seek professional oversight before proceeding.
Risks of Taking a Bridging Loan With Bad Credit
While bridging finance can be a powerful solution, it is not risk-free.
You should consider:
What happens if your property does not sell?
What if refinancing is delayed?
Can the loan term be extended if needed?
If your bridging loan exit strategy fails, the lender can enforce their security.
This is why careful due diligence and proper structuring are essential before committing.
When Are You Most Likely to Be Approved?
You are in a stronger position for a bridging loan with bad credit if:
You have significant equity
The property is standard residential or commercial
Your exit strategy is evidenced
Your credit issues are historic rather than ongoing
There are no fraud markers
Bridging lenders operate case-by-case. A well-structured deal with adverse credit is often preferable to a poorly structured deal with perfect credit.
Alternatives to Consider
Before proceeding with a bad credit bridging loan, it may be worth reviewing other options such as:
Secured loans
Remortgaging
Development exit finance
Let-to-buy arrangements
However, these options often rely more heavily on income and credit profile. This is why applicants with adverse credit frequently explore bridging finance as a short-term solution.
Final Answer: Can You Get a Bridging Loan With Bad Credit?
Yes, you can often get a bridging loan with bad credit. The decision is usually driven by the strength of your bridging loan exit strategy, the value of the property used as security, and the level of equity available.
Bad credit does not automatically disqualify you. What matters is whether the lender can clearly see how the loan will be repaid.
If you are unsure whether your circumstances would qualify, you can contact our team to discuss your position in confidence. You may also wish to learn more about our experience and approach by visiting our About section before making a decision.
Bridging finance can be highly effective when structured correctly. With proper planning and a realistic exit strategy, a bad credit bridging loan can provide the short-term flexibility you need.
Need clarity on a bridging loan with bad credit?
Before committing to a bad credit bridging loan, make sure your exit strategy is properly structured and legally sound. Our team explains the risks, lender expectations, and realistic completion timelines so you can move forward with confidence.