Do You Need a Good Credit Score for a Bridging Loan?

You’ve previously been turned down for a mortgage because of credit problems.

Maybe it was a CCJ from a few years back, some missed payments, or even an old bankruptcy. Now you’ve found a property opportunity that’s perfect for you. An auction purchase, perhaps, or a development site.

But you’re wondering if your credit history will block you again.

You need funding fast, but you’re worried about wasting time on another application that ends in rejection. Should you even bother approaching bridging lenders?

In this article, you’ll learn which credit issues lenders can overlook, when your credit history does matter, what size deposit you’ll need, and how to structure your application for approval.

Why Your Credit Score Matters Less Than You Think

When you applied for a mortgage, the lender probably spent ages going through your payslips, bank statements, and credit file. That’s because they’re committing to lend you money for 25-30 years, and they need to assess your affordability.

Bridging lenders look at things completely differently.

Asset-Backed vs Income-Based Lending

A bridging loan is ‘asset-backed finance’, not income-based lending.

The lender isn’t asking “Can you afford monthly payments based on your salary?” Instead, they’re asking “Is this property worth enough to repay the loan if something goes wrong?”

The property itself is the security. You’re only borrowing for a few months, maybe a year at most.

The loan’s short-term nature changes everything about how risk gets assessed.

Think about it from the lender’s perspective. They’re looking at a property worth £300,000, and you want to borrow £200,000 for 12 months. If you default, they’ve got £100,000 of your equity as buffer, plus a tangible asset they can sell. Your credit score from three years ago barely enters that equation.

The Exit Strategy Focus

What really matters to bridging lenders is your exit strategy. That’s just the term for how you’ll repay the loan when it ends.

If you’re buying a property to renovate and sell, that’s a brilliant exit strategy for someone with credit issues. The lender can see exactly where the repayment money will come from.

There’s no future credit check needed because you’re selling the property, not applying for another loan.

This is fundamentally different from mortgage lending. A mortgage lender needs you to have good credit because they’re betting on your future income for decades.

A bridging lender just needs to believe you can execute your exit strategy.

Credit Issues That Won’t Stop You

Let’s get specific about which credit problems you can work with. We’ve arranged funding for clients with all sorts of issues on their files.

You’re probably not as blocked as you think.

Common Problems Lenders Can Overlook

Late payments and missed payments on credit cards or loans? Lenders see these all the time. They’re looking at your current property deal, not your payment history from two years ago.

Got a few defaults showing up? Same story.

County Court Judgements carry more weight, but they’re far from automatic rejections. We’ve placed loans for clients with multiple CCJs. What matters is whether they’re satisfied, how recent they are, and what your overall application looks like. A CCJ from three years ago combined with a 35% deposit and a clear property sale exit?

That’s workable with specialist lenders.

IVAs and debt management plans can actually work in your favour. You’ve demonstrated you’re dealing with your debts responsibly rather than ignoring them. Active IVAs need specialist lenders, but they exist in our network.

Even bankruptcy isn’t the complete barrier you might fear. If you were discharged years ago and you’ve got a substantial deposit, there are lenders who’ll work with you. Very recent bankruptcy gets trickier, but it’s still not impossible.

Here’s an interesting one: no UK credit history at all. If you’re an international client who’s never had UK credit, plenty of our lenders work with foreign nationals. They assess the property deal and your exit strategy instead.

The one exception to all this flexibility?

Active fraud markers on your credit file. Those are unacceptable across the board. But everything else we’ve mentioned can be worked with if you’ve got the right structure in place.

Read more: What Checks Do Bridging Loan Companies Carry Out?

Exit Strategies: The Most Important Factor

Your exit strategy is the single most important factor when you’re applying with credit issues.

Get this right and your past credit problems become much less relevant.

Property Sale Exit: The Gold Standard

Selling the property to repay the loan is the strongest exit strategy you can have, especially if your credit history isn’t perfect.

You buy at auction for £250,000. You spend £40,000 on renovation. You aim to sell for £340,000 in eight months. The lender can see the profit margin and the timeline. Most importantly, they can see that repayment doesn’t depend on you qualifying for another loan.

This is perfect for auction purchases, refurbishment projects, and development sites. You’re in control of the timeline. The lender has certainty that their loan will be repaid from sale proceeds, not from your income or another lender’s willingness to refinance you.

Related: Property Refurbishment Bridging Loans: Your Guide to Renovation Finance

Remortgage Exit: More Complex Territory

Planning to refinance onto a long-term mortgage after the bridge? That’s where your credit history comes back into the picture.

The bridging lender needs confidence that you’ll actually qualify for that mortgage in 12 months’ time. If you can’t get a mortgage now because of credit problems, why would they believe you’ll get one next year?

You can still make this work with credit issues. Get an Agreement in Principle from a specialist buy-to-let lender who’s willing to offer you a mortgage once the bridge term ends. Use that AIP as evidence that your remortgage exit is viable.

We can arrange bridging against a future remortgage even with credit issues, but it needs careful structuring and specialist lenders who understand your plan.

How Much Deposit You’ll Need

Your deposit size is your negotiating power when you’ve got credit problems. The more cash you put down, the more doors open up.

With decent credit, you might get away with a 15% to 25% deposit. But if you’ve got CCJs, defaults, or other issues? You’re looking at 25% to 30% as your target range.

Why does a bigger deposit help?

It’s all about loan-to-value, or LTV. Lower LTV means lower risk for the lender. If they’re only lending you 60% of the property value and you’re putting in 40%, they’ve got a massive buffer if anything goes wrong.

Here’s what this looks like on a £250,000 property.

With good credit, you might put down £50,000 and borrow £200,000. With credit issues, you’re looking at £75,000 to £100,000 deposit. Yes, you need more cash upfront. But you get approved quickly and you don’t miss the opportunity.

Related: How Do Non-Status Bridging Loans Work?

When Credit History Does Matter More

Most brokers will tell you credit doesn’t matter for bridging loans. But here’s the full picture: there are situations where your credit history matters more than usual.

If you’re borrowing against your main home, you’re in regulated bridging territory. The FCA oversees these loans, which means lenders need to follow stricter rules.

Unregulated loans aren’t covered by the FCA, so the criteria is a lot more flexible and lenient. A non-status bridging loan can be used here that doesn’t require any income or credit checks.

Related: Can You Get a Bridging Loan Without Owning a House?

Why Our Broker Network Matters for Bad Credit

You won’t find the lenders we use by searching online.

Many of them only work through brokers, and some specifically focus on credit-impaired borrowers.

Standard high street banks won’t touch adverse credit bridging (or any bridging actually).

But our network of 250+ lenders includes specialist adverse credit lenders, private banks with flexible criteria, and high-net-worth individuals who lend their own funds. These lenders understand that a property investor with a CCJ and a brilliant deal is better business than someone with perfect credit and a marginal project.

Different lenders have completely different risk appetites.

One lender might say no to bankruptcy within three years. Another might say yes with a 40% deposit. Our job is knowing which lender will say yes to your specific situation and getting you to them first time.

Your Next Steps

Your credit history is workable. CCJs, defaults, missed payments, even bankruptcy don’t automatically disqualify you from bridging finance.

What matters is matching your situation to the right lender.

Before you contact us, get clear on a few things.

• What’s your exit strategy?
• Can you sell the property to repay the loan?
• How much deposit can you pull together?
• What’s your timeline?

Give us a call for a confidential assessment.

We’ve arranged loans across every credit scenario you can imagine. Your history will affect the rates you pay and the deposit you need, but it won’t stop you getting funding if the property deal makes sense.

Phone: 0330 030 5050

We’ll tell you honestly whether your situation is workable, which of our lenders can help, and exactly what you need to make it happen.