When time is critical and traditional lenders say no, finding finance can feel like an uphill battle, especially if your credit history isn’t spotless. Fortunately, bridging finance offers a flexible, short-term funding option that can still be accessible even with adverse credit.
In this guide, we explain how bad credit bridging loans work, who they’re suitable for, and what to consider before applying, with real-world examples from Goldhill Finance.
What is a bridging loan?
A bridging loan is a short-term, property-backed loan designed to cover a temporary funding gap. They are commonly used when speed is essential, such as purchasing a property before another has sold, buying at auction, or funding refurbishment works prior to refinancing.
Unlike traditional mortgages, bridging finance focuses less on historic credit issues and more on:
- The value and condition of the property
- The loan-to-value (LTV)
- A clear and realistic exit strategy
This approach makes bridging loans particularly useful for borrowers who may struggle to secure funding elsewhere.
Can you get a bridging loan with bad credit?
Yes. One of the key advantages of bridging finance is its flexibility around credit history. Many specialist lenders, including Goldhill Finance, consider applications from borrowers with:
- County Court Judgements (CCJs)
- Missed or late payments
- Defaults
- Individual Voluntary Arrangements (IVAs)
- Previously discharged bankruptcies
Rather than relying on automated credit scoring, the emphasis is placed on the strength of the security and how the loan will be repaid.
Adverse credit may affect pricing, but it does not automatically prevent access to funding.
Why bridging finance can work when credit is an issue
High-street lenders often have rigid criteria, particularly around income verification and credit scores. Bridging lenders operate differently.
They are primarily concerned with:
- How quickly the loan can be repaid
- Whether the property provides sufficient security
- The feasibility of the borrower’s exit route
This makes bridging finance a viable solution for investors, developers, landlords and homeowners who need short-term funding but don’t fit conventional lending criteria.
Common uses for bad credit bridging loans
Borrowers often use bridging finance for:
- Auction purchases with tight completion deadlines
- Buying before selling an existing property
- Refurbishment or light development projects
- Refinancing an existing bridging loan
- Releasing capital from property for business or investment purposes
As long as there is a clear plan to repay the loan, bad credit does not have to stand in the way.
Costs, terms and repayment
Bridging loans are designed to be short term, typically ranging from 1 to 12 months, although longer terms can sometimes be considered (up to 24 months).
Costs usually include:
- Monthly interest (often rolled up and paid at the end)
- Arrangement and legal fees
- Valuation costs
Interest rates are higher than standard mortgages, reflecting the speed, flexibility and short duration of the loan. For borrowers with adverse credit, rates may be slightly higher, but strong security and a solid exit strategy can help keep costs competitive.
Understanding the risks
As bridging loans are secured against property, it’s essential to plan carefully. The main risks include:
- Delays to selling or refinancing, which can increase interest costs
- Additional fees if the loan term needs extending
- Potential risk to the property if the loan cannot be repaid
Working with an experienced lender who assesses affordability and exit strategies thoroughly can significantly reduce these risks.
Bad credit bridging loans FAQs
Can you get bridging finance with bad credit?
Yes. Bridging finance is often available to borrowers with adverse credit, as lenders prioritise the property and exit strategy over historic credit issues.
How quickly can a bridging loan be arranged?
In many cases, funds can be released within 48 hours, making bridging finance suitable for time-sensitive situations.
How much can I borrow?
Most bridging loans are offered at up to 60 – 75% loan-to-value, depending on the property type, credit profile and exit plan. At Goldhill Finance you can borrow from £10,000.
What types of properties are acceptable?
Residential, commercial and mixed-use properties are commonly accepted, including properties requiring refurbishment, provided they offer adequate security.
What happens if the loan term needs extending?
Extensions may be possible, but additional interest and fees can apply. Early communication with the lender is crucial.
Case studies: Goldhill Finance in action
Case study 1: Auction purchase despite CCJs
Client: Property investor, aged 42
Situation: Multiple historic CCJs, auction purchase requiring completion within 28 days
The client approached Goldhill Finance after being declined by mainstream lenders. Despite the adverse credit history, the property offered strong resale potential and the client had a clear refurbishment and sale strategy.
Goldhill Finance provided a £180,000 bridging loan secured against the property, enabling the client to complete on time. After an eight-month renovation and sale period, the loan was repaid in full, allowing the investor to move on to their next project.
Case study 2: Bridging a home purchase with an IVA
Client: Homeowner, aged 35
Situation: Active IVA, purchasing a new home before existing property sale
The client needed short-term funding to avoid losing her onward purchase. Traditional mortgage options were unavailable due to her IVA.
Goldhill Finance arranged a £220,000 bridging loan secured against her existing property. This allowed her to complete the purchase of her new home without delay. Four months later, her original property sold and the bridging loan was repaid smoothly.
Why choose Goldhill Finance?
Goldhill Finance is a specialist direct lender focused on speed, transparency and tailored solutions. Rather than a one-size-fits-all approach, each application is assessed on its individual merits.
For borrowers with bad credit, Goldhill Finance offers:
- Fast decision-making
- Flexible underwriting
- A focus on property value and exit strategy
If you need short-term funding and your credit history is holding you back, bridging finance may offer a practical way forward.