If you have an adverse credit history, you might think it’s impossible to get a bridging loan for your property.
However, whilst bad credit can make things a little more complex, with a little help, you still could have a chance of getting the funds you need.
Lenders tend to assess applications on a case-by-case basis and will make a decision based on your individual circumstances.
We explain how getting a bridging can work and the important factors you need to consider before you apply.
There are lenders that specialise in providing bridging loans to borrowers with adverse credit histories. This can be true in the most severe cases of poor credit as it depends on your individual circumstances, intended use of the loan and planned exit strategy.
A bridging loan might still be an option even if you’ve experienced:
If your exit strategy (your planned method of repaying the loan in full) does not rely on a refinance but on a property sale or other clear source of funds, that will make the application process simpler.
Although most bridging lenders carry out a credit search for reference purposes, this is typically for their records. However, some lenders—particularly where the exit strategy is a sale—may not take adverse credit into consideration. They will still require an explanation as to why any arrears occurred.
If you’ve missed several months of mortgage payments and your property is at risk of repossession, a bridging loan could offer a solution. It could be used to stop legal proceedings, giving you time to sell the property on your own terms.
For example:
Bad credit is not always the root cause of repossessions orders being issued. It can also occur with:
A bridging loan could be useful to applicants that have temporary financial difficulties and are in need of short-term funding to resolve them.
For example, the funds could be used:
However, a bridging loan would not be suitable if:
Lenders will require evidence of funds due (such as a property under offer) or a defined route to repay the loan before they will consider a bridging loan application.
In most cases, lenders will not approve an application if the funds are to be used solely for debt consolidation, especially if it involves your residential home.
The only scenario where consolidating credit via a bridging loan on a residential property might be acceptable is when:
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To improve a bridging loan application, you could try:
Dealing with a bad credit history can feel like a burden and it may restrict the type of finance options that are available to you.
If you are worried about your credit score impacting your ability to get a bridging loan, take some time to assess your finances and ensure that it is an affordable option.
The Willows team is able to help you get started with your application and can help you find the most suitable lender for your circumstances.
Call us on 01656 766 158 to find out more.
Getting a quote won’t affect your credit score
We’re extremely proud to be rated ‘Excellent’ for our service standards year after year. Since 2008 we’ve helped thousands of customers across the UK to find the right finance for their needs – no matter how complicated the circumstances.
At Willows Finance we ensure your personal information is kept secure and confidential.
PRIVACY OF YOUR INFORMATION
At Willows Finance Ltd, we appreciate that your privacy is extremely important to you. With this in mind, we have put in place a number of measures to ensure that any personal details we obtain from you as a result of visiting this website is processed and maintained in accordance with accepted principles of good information handling and also in accordance with the Data Protection Act 1988.
This statement provides you with details of the type of information we may hold about you, how we obtain and use information and how we protect your privacy.
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Authorised and regulated by the Financial Conduct Authority
Firm Reference Number: 670052
Company Number: 6678545 (Registered in England and Wales)
This document outlines the services we provide. If you need clarification, please contact us at 01656 766158.
We offer first and second charge regulated mortgage contracts for business or personal use.
Other finance options may include:
Regulatory Status:
We offer an advised mortgage broking service and provide enough information for you to make an informed decision.
We are not independent financial advisers. Free debt advice is available from the Money Advice Service.
You can view our privacy policy at: https://willowsfinance.co.uk/privacy-cookie-policy/.
Lenders may also have their own privacy policies which will be provided to you.
We charge a broker fee upon loan completion. The average fee is approximately 5%, depending on your situation.
Fee details:
No refund is offered after completion. You may pay upfront or add the fee to your mortgage. Fees and commission will be detailed in your ESIS and Mortgage Agreement.
You will receive a Mortgage Agreement and an ESIS document detailing:
You may cancel your application anytime before completion without any charge. Mortgages cannot be cancelled after completion.
Missing payments can lead to charges, repossession, and negative impacts on your credit rating.
Consolidating debt may result in higher long-term interest. Securing debt against your home increases risk.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loan secured on it.
If you wish to complain, contact us at:
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Tel: 01656 766158
You may be able to refer your complaint to the Financial Ombudsman Service.
We are covered by the FSCS. You may be eligible for compensation of up to £85,000 per person per firm for mortgage advice and arranging.
More info: www.fscs.org.uk
After processing your application, you’ll receive a Mortgage Agreement and have a 7-day reflection period.
Contact us during this period with any questions. To proceed, sign and return the agreement.
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