Bridging Loans with Bad Credit: Which Lenders Accept Adverse?

Can You Get a Bridging Loan with Bad Credit?

Yes, and more easily than you might expect. Bridging lenders are asset-based lenders. They focus on the security value and your exit plan, not your credit history.

Where a mortgage lender will decline you for a CCJ from three years ago, a bridging lender will ask: what is the property worth, and how are you repaying? If the answers are strong, credit history is secondary.

That said, adverse credit does affect your terms. You’ll typically pay 0.10%–0.30%/month more than a clean borrower, and your maximum LTV will be lower. The question is whether those terms still make the deal viable, and for many borrowers, they do.

We found unregulated bridging is the most common route for adverse-credit borrowers. Because it falls outside FCA mortgage rules, lenders have more discretion in how they assess applications. That flexibility is precisely what makes bridging finance accessible when mainstream lending is closed.

Which Bridging Lenders Accept Adverse Credit?

MT Finance explicitly does not credit-score. Decisions are made on the property and the exit plan. CCJs, arrears, defaults, and complex credit histories are all considered. Rates from 0.90%/month. This is the clearest adverse-friendly option in the market.

Glenhawk accepts adverse credit alongside mixed-use and commercial security. Their underwriting is manual and relationship-driven. Rates from 0.61%/month, lower than MT Finance but with a narrower definition of what adverse they’ll accept.

Streambank specialises in complex and adverse-credit cases, including borrowers coming out of bankruptcy or IVA. Their appetite for unusual situations is broader than most, but pricing reflects that risk.

Funding 365 and Octopus Real Estate can consider adverse on a case-by-case basis but are not specialist adverse lenders. For clean adverse cases, a single old CCJ, resolved arrears, we have found they will still quote. For more complex profiles, the specialists above are the better starting point.

How Bad Credit Affects Your Bridging Loan Rate and LTV

Adverse credit typically adds 0.10%–0.30%/month to the rate a clean borrower would receive. On a £300,000 bridge for six months, that’s £1,800–£5,400 in additional interest.

Whether that’s a meaningful cost depends on the deal. For an auction purchase at a significant discount to market value, we find it usually is not.

LTV caps tighten with adverse credit. Where a clean borrower might access 75% LTV, an adverse-credit borrower is more likely to see offers at 60%–70%. The lender is reducing their exposure against the risk that enforcement becomes necessary.

The severity and recency of adverse credit matters. A satisfied CCJ from four years ago affects your terms less than an active arrears arrangement from last year.

If your credit profile is complex, use a specialist broker to package the application.

We found that how the adverse is presented, what caused it, how it was resolved, what your current financial position is, affects lender appetite and pricing more than the raw credit history alone.

What Counts as Adverse Credit for a Bridging Lender?

CCJs are the most common adverse marker. Lenders look at: whether the CCJ is satisfied or outstanding, how old it is, and how large it is. A single satisfied CCJ under £2,000 from three years ago is a very different case from multiple recent unsatisfied CCJs.

Mortgage arrears are taken more seriously than unsecured arrears. Falling behind on a mortgage is a direct signal about your ability to service secured debt, exactly what the bridging lender is extending. Unsecured arrears (credit cards, personal loans) are generally viewed more leniently.

Bankruptcy and IVA: timing since discharge is the critical variable. Most lenders require at least three years post-discharge. Streambank will consider more recent cases if the underlying story is strong and the security is clean.

Defaults and debt management plans are assessed individually. What caused the situation, what has happened since, and whether you currently have a stable income all factor into lender appetite alongside the credit event itself.

How to Get the Best Terms with Adverse Credit

A specialist broker is your most effective tool. Lenders like MT Finance and Streambank use manual underwriting, they respond to well-packaged applications that explain the credit history in context.

We recommend a broker who regularly places adverse-credit bridges: they know which underwriter to approach and how to present the case.

Your exit plan is the most important document in the file. A strong, documented exit, a sale agreed, a mortgage in principle from a lender who will accept your profile, or a clearly funded refinance, matters more to the lender than how clean your credit is.

Asset quality is the second lever. A clean, well-located property with strong secondary market appeal gives the lender confidence that enforcement will not result in a loss. That confidence translates into better pricing and higher LTVs.

If you have time before you need the bridge, resolving outstanding CCJs before applying can make a meaningful difference. Even paying off a small satisfied CCJ signals intent and removes a direct objection from the underwriter’s checklist.

If you are unsure whether your credit profile will be accepted, a specialist broker can run a soft inquiry with the likely lenders before you commit to a formal application.

Bridging Loans with Bad Credit FAQs