Bridging Loan with Bad Credit

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Bridging With Bad Credit

Our chief mortgage adviser Errol Hall Cert CII (MP & SMP) shares his expertise on getting a Bridging Loan with Bad Credit.

Is it possible to get a Bridging Loan with Bad Credit?

It’s certainly possible, however, a lot depends upon the repayment strategy, which is the way that you intend to repay a loan before or at the end of its term.

What makes Bridging Loans more flexible for Bad Credit?

If your exit strategy is to repay the loan by selling the property, then having poor credit may not be an issue. The lender will allow you to roll up or include the monthly payments within the actual Bridging Loan itself. If the monthly payments are rolled up within the loan then you don’t have to prove to them that you’re able to repay the loan, meaning Bad Credit might not be taken into consideration.

Can you get a Bridging Loan if you have a CCJ?

You can, but again,this depends upon the exit strategy. If you were planning to eventually refinance the Bridging Loan with a loan from another lender, then you’d be required to demonstrate that you’re able to obtain the required finance.Β 

This might prove to be very difficult if you have a CCJ, IVA or a Default, so a lot depends on the exit strategy that you plan to use to refinance.Β 

Speak To An Expert

We’ll take care of all the heavy work. From finding the right mortgage product and providing you with a detailed quote, to submitting the mortgage application on your behalf and guiding you right through to the completion of your mortgage.

Do you need a good Credit Score for a Bridging Loan?

Each lender has their own internal credit scoring system and this is never disclosed to applicants. Generally, the higher your Credit Score the better.Β 

Can a Bridging Loan improve your credit history?

Not necessarily, but if you repay it on time it may help to rebuild your score.

What are the risks and costs of a Bridging Loan?

As with any loan, A Bridging Loan is secured against a property. The main risk is that you will stand to lose that property if you’re unable to repay the loan. The cost of a Bridging Loan, due to its flexibility, may prove a little costlier than a conventional mortgage.Β 

The actual structure of the loan, however, will be very similar. There will usually be a lender’s arrangement fee that can either be paid upfront or added to the loan. There are also valuation and legal fees, and you usually have the option to include all the monthly interest repayments within the loan, so you avoid having to find that amount to pay each month.

How can Mortgage Broker Services help someone with Bad Credit to get a Bridging Loan?

We have extensive knowledge of Bridging Loans and access to a wide range of products. To find out more, get in contact with us via the office number 0333 772 1551, email us, or use our website contact form.

Some Bridging Finance is not regulated by the Financial Conduct Authority.


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