Bad Credit? No Problem! Explore Your Bridging Loan Options

Welcome to Expert Mortgage Brokers, where your property financing needs are met with precision, care, and unmatched expertise. Specialising in Bad Credit Bridging Loans, we pave the way for home buyers and property investors to bridge the gap to their next property purchase, renovation project, or investment opportunity, regardless of credit challenges.

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Contact us today to unlock the potential of your property investments with the right bridging loan solution. Your successful property venture begins here.

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Bad credit shouldn’t block your path to property success

We understand that a bad credit score or adverse credit history can significantly hinder your chances of securing the necessary funds for your next property move. That’s why we offer tailored solutions for those with credit problems, ensuring you get the bridging finance you need to move forward.

Our bridging loan solutions are designed not just as a short-term loan option but as a bridge to future financial stability and property investment success. With competitive rates, flexible terms, and a streamlined application process, accessing the funds you need has always been challenging.

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What is a bad credit bridging loan?

A bad credit bridging loan is a short-term loan, which is secured against a property. These loans are designed to bridge a gap between two events, such as the purchase of a new property and the sale of your current home.

These loans are usually taken out for a maximum of 18 months. They are limited to 12 months for bridging loans secured against your own home as they become regulated by the FCA. These loans are known as regulated bridging loans.

In almost all cases, where a loan is repaid before the end of its term, you only pay interest for the period that the money is borrowed.

How can a bridging loan benefit you?

They tend to be used in situations where other types of finance wouldn’t be possible. The main consideration for potential borrowers is your exit strategy – your plan for how you’ll repay the loan.

As the interest is usually added to the loan, meaning there are no monthly payments to make, you may be able to borrow funds in the short-term that otherwise wouldn’t be affordable.

For example, if you’ll be repaying the loan through the sale of the property, your income and credit history don’t impact your ability to repay the loan.

As such, the likelihood of selling the property for the expected price during the term of the loan is far more important during the application process than your income or credit history. This will be reflected in the documents and information that the lender requests during the application process.

Can I get a bridging loan with bad credit?

Yes, previous credit problems are less of a problem when taking out a bridging loan than with other types of borrowing. This is because the interest rates, arrangement fees and other costs are often rolled into the loan terms, meaning the lender is not reliant on you to make monthly repayments.

We’ve arranged lots of bridging loans for people who are looking to avoid repossession, those who have already been repossessed and even those who have previously been made bankrupt.

As long as your chosen exit strategy is realistic and can be backed up when the lender checks, we should be able to arrange a loan for you.

What types of credit problems will bridging loan lenders consider?

Bridging finance lenders are generally very flexible and take a common-sense approach to lending. As such, they will consider most circumstances, including:

  • Defaults.
  • CCJs.
  • Mortgage arrears.
  • Bankruptcy.
  • IVAs.
  • Debt management plans.
  • History of payday loans.
FURTHER READING:

Factors bridging finance lenders consider for bad credit

Applying for a bridging loan with bad credit? Here’s what lenders check:

  • YOUR ABILITY TO REPAY: More than your credit score, lenders want to know you can make the loan payments.
  • EXIT STRATEGY: Whether selling the property or refinancing, your plan needs to be solid. Sellers expect a review of local sales and market times. Refinancers, be ready to show your agreement in principle (AIP) and possibly proof of income.
  • PROPERTY VALUATION: This might be needed to back your finance application.

These checks are vital to getting your loan approved. Need more info or help with different funding options? Specialist brokers are here to assist.

Why choose Expert Mortgage Brokers for your bridging loan?

At Expert Mortgage Brokers, we’re committed to getting your bridging loan approved quickly and smoothly. Here’s how we make it happen:

  • TAILORED BRIDGING LOAN SOLUTIONS: Specifically designed for individuals with poor credit history, ensuring your credit rating is no barrier to property finance.
  • COMPETITIVE RATES AND FLEXIBLE TERMS: Our bridging loans with bad credit come with competitive rates and terms designed to suit your unique financial situation.
  • QUICK ACCESS TO FUNDS: Our streamlined process ensures you can get a bridging loan quickly, allowing you to act fast on property opportunities.
  • PERSONALISED SUPPORT: Benefit from customised advice and support from our team of experienced mortgage brokers, guiding you every step of the way.
  • PROVEN SUCCESS: With a track record of helping clients overcome their credit issues to repay their loans successfully, you’re in good hands.

In the world of bridging finance, speed is critical. That’s where we come in. Ready to get started? Let’s chat about your bridging loan needs today.

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Types of bridging loans for people with bad credit

There are several types of bridging loans available for individuals with bad credit:

  • BRIDGING FINANCE FOR PEOPLE WITH CCJS AND DEFAULTS: Some lenders are more open to CCJs and defaults if they have been satisfied before or as part of the application process. Up to 80% loan-to-value (LTV) is possible for those with CCJs and defaults.
  • SECOND CHARGE BRIDGING LOANS WITH BAD CREDIT: Second charge bridging finance can be arranged for people with adverse credit, subject to a suitable exit being in place. However, the first charge lender’s consent is required, and recent arrears may affect the approval.
  • COMMERCIAL BRIDGING LOANS WITH BAD CREDIT: Bridging loans secured against commercial properties can be offered on both an owner-occupied or commercial investment basis, as long as the exit strategy is vital.
  • OPEN BRIDGING LOANS: This type of loan has no fixed repayment date and can be repaid whenever funds become available.
  • CLOSED BRIDGING LOANS: This type of loan has a fixed repayment date and is typically used for a specific period, such as 1-18 months.

Don’t let bad credit keep you from pursuing your property goals. Tap into the expertise of our mortgage brokers and find the bridge to your success today.

FURTHER READING:

Adverse credit bridging loan rates & costs in the UK

Bridging loans for individuals with bad credit are available in the UK, offering a lifeline for those needing immediate funds during property transactions or other urgent financial situations. Despite the borrower’s poor credit history, these loans can provide a solution, albeit with slightly restricted options and potentially higher costs.

Interest rates

The interest rates for adverse credit bridging loans typically range from 0.45% to 1.75% per month, with lower rates reserved for applications at lower loan-to-values (LTVs). For borrowers with previous adverse credit, the lowest available rate is usually 0.45% per month, with rates between 0.48-0.75% being common. Lower rates are generally associated with applications at 50% LTV and below.

Setup costs

In addition to the interest, there are other setup costs to consider when taking out bridging finance. These include lender arrangement fees, 1-2% of the loan amount, payable when the loan application is complete and can usually be added to the loan.

  • LENDER EXIT FEES: Although becoming less common, these fees are typically either 1 month’s interest or 1% of the loan amount.
  • BROKER FEES: Many brokers charge a fee for setting up your loan, often 1-1.5% of the loan amount.
  • VALUATION FEES: These are payable for a valuation report produced by a chartered surveyor of the lender’s choosing.
  • LEGAL FEES: You and the lender are responsible for the legal expenses involved in setting up the loan, and you will usually be charged these fees towards the end of the application process.

Ready to bridge the gap?

Whether you’re eyeing a new home, a renovation project, or a strategic property investment, don’t let bad credit hold you back. Our specialised solutions cater directly to your needs, with options for both residential and commercial bridging loans.

Don’t worry about the credit check, loan application, or whether you have a poor credit score; our team is here to find the right bridging lender for you. Every bridging loan application is considered individually, taking into account your unique circumstances and property finance goals.

Take the first step with a free consultation

Getting started with Expert Mortgage Brokers is as simple as clicking the button below for a Free Bridging Finance Consultation. Discover how our bad credit bridging loans can be the bridge to your property finance success. Together, we’ll review your loan opportunities, address any credit problems and outline a clear, actionable plan towards securing your bridging finance.

Unlock the door to your property aspirations today and build a stronger financial future despite the challenges your credit history may present. With Expert Mortgage Brokers, a bright property investment horizon awaits.

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Exploring alternatives to bad credit bridging loans

Bridging loans are great for quick financial needs, but it’s smart to look at all options. Residential mortgages offer long-term finance for homebuyers with lower interest rates. Buy to let mortgages suit those wanting to own rental properties, considering rental income for mortgages. Secured loans let you borrow against your property’s value for more financial support. Choose based on your financial needs and goals.