What is a bridging loan?
A bridging loan is a short-term secured loan — typically 1 to 24 months — used to "bridge" a gap in funding. They are most commonly used by property investors and developers who need to move quickly, refinance, or complete works before switching to a long-term mortgage.
Unlike high-street mortgages, bridging loans are assessed primarily on the security (the property) and the exit strategy — not solely on your credit score. This makes them one of the most accessible finance products for borrowers with adverse credit.
Can I get a bridging loan with a CCJ or default?
Yes. Many specialist bridging lenders on our panel actively lend to borrowers with adverse credit histories, including:
CCJs & defaults
Satisfied or unsatisfied. Age and value considered — a satisfied CCJ over 2 years old is rarely a barrier for bridging.
IVAs & DMPs
Active or recently discharged IVAs considered by select lenders, typically requiring lower LTV and a stronger exit.
Bankruptcy
Discharged bankruptcy considered from 12+ months post-discharge — security quality and exit credibility are the key factors.
Missed payments
Recent missed payments on mortgages or unsecured debt considered case by case. The trajectory matters — improving situations reviewed favourably.
The key criteria for adverse credit bridging loans are the value and type of security, a credible exit strategy, and the overall strength of your case — not just your credit score.
What drives your bridging loan rate?
Rates vary by case — specialist lenders do not publish fixed rate tables. The main factors that determine your rate are:
LTV (loan-to-value)
Lower LTV = lower risk for the lender = better pricing. Most adverse credit bridging sits at 65–75% LTV. Each percentage point of LTV reduction typically improves terms.
Exit strategy credibility
A clear, committed exit (exchanged sale or agreed refinance) carries far more weight than a vague plan. Closed bridges attract materially better terms than open ones.
Director / guarantor credit profile
Adverse credit is assessed holistically — age, amount, whether satisfied, and the overall trajectory of the business or investment plan all matter more than a single CCJ.
Property type and location
Standard residential investment and commercial property in England and Wales attracts the widest lender appetite. Unusual property types, remote locations or complex titles narrow the field.
What can a bridging loan be used for?
Property purchases
Buying a property at auction (typically 28-day completion required), purchasing before your existing property sells, or acquiring uninhabitable properties that mainstream lenders won't fund.
Refurbishment and development
Funding light or heavy refurbishment work, or bridging into a development finance facility while planning permission is obtained.
Refinancing and debt consolidation
Releasing equity from an existing property to pay off pressing debts, fund a business, clear an HMRC demand, or avoid repossession while a longer-term solution is arranged.
How does the exit strategy affect my application?
The exit strategy is how you plan to repay the bridging loan at the end of the term. Lenders assess this closely. Common exits include: refinancing onto a buy-to-let or commercial mortgage, selling the property, or completing a development and selling units. A clear, credible exit makes your application significantly stronger — even if your credit history is poor.
How we introduce you to a bridging lender
Adverse Credit Brokers is a trading style of Archangel Private Finance Limited. We are a specialist business finance introducer — not a lender and not FCA-authorised. We review your business situation, identify the most suitable lenders on our panel, and make a direct introduction. You deal with the lender directly from that point. No upfront fees.