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Bridging Loans For Bad Credit

A bad credit bridging loan is a type of short term loan given to borrowers who have a lower than average credit rating. It can be used to bridge the gap in your finances until you can either repay the loan in full or secure a more permanent form of finance. Since bridging loans are secured against the property, lenders will often issue bridging loan finance to borrowers even if their credit history is less than perfect.

Your Mortgage Options are independent mortgage brokers with access to the whole of the market. Provided you have a realistic exit plan, then most lenders will welcome applications even if you have:

  • Payday Loans
  • Bankruptcy
  • Repossessions
  • Debt Management Plans
  • Individual Voluntary Arrangements (IVA)
  • County Court Judgements (CCJ)
  • No Credit History
  • Defaults
  • Low Credit Score
  • Late Payments
  • Missed Mortgage Payments

Bad Credit Bridging Loans Explained

A Bridging Loan is a short term secured loan used to “bridge the gap” between buying a new property and selling an existing property. You might also hear them referred to as “Emergency Property Finance”, “Gap Financing” or “Interim Financing”.

Bridging loans are especially handy when you need access to finances fast. For example if you’ve purchased a property via auction, you would need to have the money readily available to purchase the property there and then. However, if you haven’t sold your current property yet you might not have the finances to hand. If you also have a history of defaults, CCJs and a poor credit score, you may find yourself struggling to secure a loan.

This is where a bad credit bridging loan can help.

At Your Mortgage Options we are completely impartial and independent with access to the Whole of the Market. This means we’re able to place you with the right provider of a bad credit bridging loan or a poor credit emergency property loan, that is best suited to your needs and circumstances. We are also able to help you secure:

bad credit bridging loan

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Why Choose Us?

Whole of Market Access

There are various lenders and types of bad credit bridging loans available, each with their own pros and cons. Only looking at products from one lender will limit your choices and likely not leave you with the best deal. With our help you’ll have access to whole of the market, including to lenders not available on the high street.

We Are On Your Side

We work for you, not the lender and act solely in your best interests. Your Mortgage Options are whole of market, impartial and independent mortgage brokers. So you can be sure that the loan we recommend will be the most suitable for your individual circumstances. We understand the difficulties you face if you’ve struggled with credit before, and we’ll do all we can to help.

We Do The Hard Work For You

We pride ourselves on being meticulous in our whole of market research when it comes to bad credit bridging loans. Our team will walk you through the whole process from beginning to end. This includes filling out all of the paperwork, and where appropriate, helping with providing the solicitors and conveyancing.

We Consider Your Circumstances

We take the time to carefully assess your circumstances. This helps us to find the right bad credit bridging loan that works best for you. Each case is unique, which is why our process starts with a free, no-obligation chat between you and one of our advisors to see how we can help. Get started to discuss how you could get a bridging loan with bad credit.

Bad Credit Bridging Loans FAQs

A bridging loan is a temporary loan that bridges the gap in your finances until you can either repay the loan in full or secure a more permanent form of finance. Because they are usually secured against a property, some lenders are happy to welcome applications from you even if your credit history is not the best. This is what is known as a bad credit bridging loan.

While a poor credit score may present a minor setback when applying for bridging loan finance, it’s certainly not the nail in the coffin you might think it is. It is very possible for you to get the bridging loan you need even with a poor credit history, and our brokers can help you do it. Get in touch today to learn more.

The amount that you can borrow for a bad credit bridging loan ranges from around £25,000 to £25,000,000. However each case is unique and the amount that a lender is willing to let you borrow will depend on your individual circumstances. If you want to learn more, contact our team today.

Bad credit bridging loans are typically processed very quickly, in timeframes ranging from the same day to a few weeks.

Yes. You may well be able to access bridging loan finance to fund property development with less than perfect credit. The lenders look for a workable exit strategy and your plans of how you intend to repay the bridging loan within its term. It’s always best to speak to an adivsor first if you’re unsure whether you’ll get accepted, since there are certain measures you can take to increase your chances.

Bad credit bridging loans have a relatively high rate of interest and are a larger loan over a shorter term; ideal for “bridging the gap” as a short term fix. Whereas a mortgage is a low interest form of financing a home or property taken over a time frame of up to 30 years, so much better suited to longer terms. You can learn more about bad credit mortgages here, which are another option who may have struggled with their credit score in the past.

When it comes to getting advice regarding applying for a bad credit briding loan, the earlier you reach out the better. This gives us more opportunity to help you and reduces the stress and disappointment of not being able to secure the finance that you need.

Bad credit bridging loans can be used by private individuals, property investors and companies when their credit history is less than perfect. They are typically used for projects such as:

  • Maintaining a place in a sale chain
  • Refurbishment Finance – Renovating, converting or restoring properties
  • Re-Bridging
  • Buying a property at auction
  • For quick purchases when a bargain property or other must have item comes along
  • Solve business short term cash flow problems
  • Inheritance tax and probate issues
  • Buying property below market value
  • Repossession prevention
  • Property development

Typically between 6 and 24 months, but there are exceptions to every rule.

We have access to the whole of the market and are totally independent, meaning that we can find the right terms to suit your circumstances. Our role in this is to ensure that you find the right bad credit bridging loan, and that we place you with the right lender.

Bad credit bridging loans are typically non-status loans. This is because bridging loans are secured against the property, which you can fall back on if you’re unable to repay the loan amount when it becomes due.

Typically across the board, most lenders have arrangement fees of around 2% of the total amount borrowed. You don’t have to pay these up front as they are usually deducted from the sum that you are borrowing. So if you were to arrange a £100,000 bridging loan then you would receive £98,000 as an advance. Each case is unique though, so get in touch with our adivsors to learn more.

It’s standard proceedure when arranging a bad credit bridging loan for lenders to instruct property surveyors to carry out an independent valuation of the property or development. The fee for this must be covered by the borrower. This gives reassurance that the property is of sufficient value, and it also confirms that the valuation of the property is accurate and realistic.

Yes. Legal fees will also need to be factored into the total cost of your bad credit bridging loan, both on the lender’s legal fees and your own solicitors’ also.

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