Bad credit bridging loans for CCJs, defaults, IVAs and past bankruptcy
CCJs, defaults, arrears, an IVA or a previous bankruptcy don't automatically rule out a bridging loan. A mortgage lender looks at your credit score because it's lending for 25 years. A specialist bridging lender is lending for months against a property, so the property, your equity and your exit carry most of the weight.
Rates from around 0.80% a month on the cleanest adverse cases, typically 0.95% to 1.5% or more depending on the issue, how recent it is, the LTV and the exit. Up to 70% to 75% LTV on stronger historic cases. No hard credit search to find out where you stand.
On this page
The short version
- Bad credit is usually a pricing question, not a yes-or-no question. It changes the rate and LTV more often than it causes a decline.
- Lenders care most about equity, a believable exit, and the context of your credit: satisfied or not, how old, how much.
- Rates from around 0.80% a month on the cleanest cases, typically 0.95% to 1.5%+.
- Up to 70% to 75% LTV on older, satisfied issues, and around 60% to 65% for an active IVA, discharged bankruptcy or repossession.
- Satisfying a CCJ before you apply is often the single most effective thing you can do.
- We check where you stand without a hard credit search. A lender only searches once you choose to apply.
What is a bad credit bridging loan?
A bad credit bridging loan is short-term finance secured on property for someone with adverse credit, such as a CCJ, default, arrears, IVA, DRO or past bankruptcy. It works exactly like any other bridging loan. The difference is that lenders weigh your credit history against the equity in the property and how you'll repay, so the credit issue usually changes the rate and LTV rather than the answer.
If a mainstream lender has turned you down, it's usually because of a scorecard. A mortgage lender is taking on 25 years of income-based risk, so your credit conduct dominates. A bridging lender is lending for 1 to 24 months against a property with a clear repayment date. If the property is worth well over the loan and the exit is solid, your credit history matters a lot less.
It still matters, though. A satisfied CCJ from four years ago on a 50% LTV case with an exchanged sale is a non-event for most lenders. A £15,000 unsatisfied default from last month on a 75% LTV case with "I'll sell it eventually" as the exit is a real problem. The rest of this page shows where your situation is likely to sit.
How lenders actually look at bad credit
Every lender's criteria are different, but the logic behind the decision is remarkably consistent. It comes down to three questions, roughly in this order.
How much equity is there?
Equity is the lender's real protection. The more room between your loan and the property's value, the more flexible a lender can be about your credit.
How will the loan be repaid?
A specific, evidenced exit beats a plausible one every time. "I'll refinance" is weak. "I have an agreement in principle from a named lender" is strong.
What does the credit history actually say?
A CCJ from a business dispute five years ago says little about the risk today. A pattern of recent, growing, unresolved debt says a lot.
The detail that changes the outcome
| Factor | Helps your case | Works against it |
|---|---|---|
| Status | Satisfied or settled | Unsatisfied or still outstanding |
| Age | More than 12 months, ideally 2+ years | In the last 12 months |
| Amount | Small, ideally under £3,000 if satisfied | Large, especially over £10,000 unsatisfied |
| Number | A single, explainable event | Several events close together |
| Effect on the exit | None. You're selling, or a refinance lender will accept it | It could block the refinance you're relying on |
| Leverage | Headroom below the maximum LTV | Asking for the top of the range |
The demerit system many lenders use
Many specialist lenders don't just ask whether you have adverse credit. They score each qualifying entry from the last 12 months as a demerit, and the number of demerits sets your eligibility and rate loading. A typical framework looks like this:
| Entry | Typical treatment |
|---|---|
| Any entry up to £300, or a satisfied entry up to £3,000 | Usually ignored, with no demerit and no rate impact |
| Unsatisfied entry of £300 to £10,000 | Usually 1 demerit |
| Satisfied entry above £3,000 | Usually 1 demerit |
| Unsatisfied entry above £10,000 | Usually referred to an underwriter |
| 1 demerit in 12 months | Small loading, commonly around +0.15% pm |
| 2 demerits in 12 months | Larger loading, commonly around +0.25% pm |
That's why two people with "the same" bad credit get different outcomes. A £2,800 satisfied default may not register at all, while a £2,800 unsatisfied one adds a demerit. Check the exact value, date and status of every entry before you assume anything.
Mortgage and secured loan arrears are judged on the highest number of consecutive months in arrears in the last 12 months, not the amount. One month quickly put right reads very differently from three or four months in a row. If the bridge will clear the arrears, say so up front.
Rates and LTV by credit profile
A guide to where your case is likely to sit across the specialist lender panel. It's not a quote, as property type, exit strength and loan size all move these bands. A weak credit profile with a very strong exit and low LTV will often do better than this table suggests.
| Credit profile | Typical max LTV | Rate impact | Lender choice |
|---|---|---|---|
| One historic, satisfied, low-value event (2+ years) | Up to 75% | Little or none | Wide |
| Recent but satisfied, moderate value | 70% to 75% | Small, around +0.15% to +0.25% pm | Wide |
| Single unsatisfied event, moderate value | 65% to 70% | Moderate | Moderate |
| Several demerits in 12 months | 60% to 65% | Higher, often referred | Specialist only |
| Active IVA, DMP or recent DRO | 60% to 65% | Priced on referral | Specialist only |
| Discharged bankruptcy (2+ years) | 60% to 70% | Moderate to higher | Specialist |
| Previous repossession | 50% to 60% | Higher, referral needed | Narrow |
| Several different types of event | Case by case | Individual underwriting | Narrowest, needs careful packaging |
Which route fits you?
Satisfied and over 12 months old
Most adverse-credit lenders will treat you close to a clean case. Apply as normal.
Unsatisfied, recent or secured arrears
The specialist adverse tier. Expect a modest rate loading and a slightly lower LTV, with a clear route to approval if the exit is credible.
Active IVA, DRO, DMP or past bankruptcy
You need a specialist lender and a well-packaged case. This is where a broker who knows insolvency criteria matters most.
Several event types, or a repossession
Individual underwriter review. Get your explanation and evidence together first, and lead with the exit.
Your credit issue explained
What each type of adverse credit means, how long it stays on your file, how it typically affects rate and LTV, and what helps.
CCJs (County Court Judgments)
A CCJ is issued when a court rules you owe a debt. It stays on the Register of Judgments for six years, whether or not you later pay it, unless you pay it in full within a month of the judgment, in which case it can be removed. Satisfied CCJs are treated far better than unsatisfied ones.
Effect: an older, satisfied CCJ often makes little or no difference. A recent unsatisfied one usually adds a demerit and a rate loading. What helps: satisfy it before you apply if you can. If not, clear it from the loan at completion and get that written into the offer.
Defaults
A default is registered after persistent missed payments, usually 3 to 6 months, and stays on your file for six years from the default date, paid or not. A single historic default matters less than several recent ones.
Effect: treated much like CCJs, with recency, value and whether it's settled all counting. What helps: settling it, and a short written explanation.
Mortgage and secured loan arrears
Looked at more closely than unsecured issues, because they relate directly to the kind of loan you're asking for. Lenders measure the longest run of consecutive missed months in the last year.
Effect: one quickly cleared month has little impact. Several consecutive months mean a lower LTV and a higher rate. What helps: using the bridge to clear the arrears and stop any repossession action, with the figures shown up front.
Unsecured arrears and missed payments
Missed payments on cards, loans and car finance are the most forgivable category, especially if they're small and didn't become a default or CCJ. Effect: usually minimal where the property and exit are strong.
IVAs (Individual Voluntary Arrangements)
A formal, legally binding agreement to repay creditors over usually five or six years instead of bankruptcy. It's on the Insolvency Register during its term and on your credit file for six years from the start.
Effect: both active and completed IVAs are considered by specialist lenders. An active IVA gets more scrutiny of the exit and typically 60% to 65% LTV. A completed one is treated more kindly. What helps: a record of payments made on time.
DROs (Debt Relief Orders)
A lower-cost alternative to bankruptcy for people with small debts and few assets. It shows on your credit report for six years. Effect: lenders focus on what's changed since. A recent DRO usually means 60% to 65% LTV with a specialist lender.
Bankruptcy
The most serious form of personal insolvency. Discharge usually happens automatically after 12 months, but it stays on your file for six years from the bankruptcy order.
Effect: undischarged bankrupts are rarely fundable. After discharge, a growing number of specialist lenders will help, typically at 60% to 70% LTV, with the time since discharge and a clean record since being the biggest factors.
Debt Management Plans
An informal plan to repay at a reduced rate. It isn't an insolvency procedure, so it carries less weight than an IVA, but the underlying accounts will show reduced payments. Effect: a plan kept up without gaps reads as financial discipline. Expect specialist lenders and a conservative LTV while it's active.
Payday loans
A single repaid payday loan is rarely a problem. A recent or repeated pattern can worry lenders more than the amounts suggest, because it points to ongoing cash-flow pressure. Explain any one-off reason.
Repossession
One of the more serious events, because it's exactly what a secured lender is trying to avoid. It doesn't rule you out, but expect a narrow lender pool, 50% to 60% LTV and a very clearly evidenced exit. Time since, and a clean record since, both help.
Several issues at once
Where a default, a CCJ and arrears all fall within 12 to 24 months, lenders read it as a pattern, and the case goes to an underwriter. That isn't a decline. It means the case needs a clear, honest explanation rather than just a credit file.
Scotland and Northern Ireland
Scotland uses different terms that lenders treat in a similar way. Sequestration is the equivalent of bankruptcy, a Protected Trust Deed is the equivalent of an IVA, and the Debt Arrangement Scheme works more like a debt management plan. Northern Ireland largely mirrors England and Wales. Tell us the exact arrangement rather than translating it, because the legal status affects which lenders will look at the case.
Worked examples
Illustrative composites based on patterns we see often, not specific transactions. They show how "bad credit" can lead to very different outcomes.
Older satisfied CCJ, strong equity, auction purchase
One £4,200 CCJ from three years ago, paid off a year later. Buying at auction at 55% LTV, then refinancing onto a buy-to-let mortgage. Satisfied, historic and low leverage, so the credit history barely affects the price.
Standard tier, little or no loadingRecent unsatisfied default, higher LTV
One £6,500 default from eight months ago, still unpaid. Buying a property for light refurbishment at 70% LTV, then selling. Expect a demerit and a rate loading. Strong comparables for the after-works value and a realistic schedule move it from possible to well priced. Settling the default first would help further.
Specialist tier, rate loadingDischarged bankruptcy, refinance plan
Discharged three years ago with nothing adverse since. Raising capital from an existing investment property at 60% LTV to fund another purchase, with a clear refinance exit. Time since discharge and a clean record do most of the work.
Specialist lender, conservative LTVActive DMP, semi-commercial auction buy
On a DMP for 18 months with no missed payments, buying a shop with a flat above at 60% LTV. A well-kept plan reads as discipline, and the case suits the specialist commercial bridging panel.
Specialist tier, conservative LTVBad credit bridging rates, LTV and fees
Rates start from around 0.80% a month on the cleanest adverse cases. Most adverse cases price between 0.95% and 1.5% a month or more, and the riskiest profiles can approach 2%. LTV is usually capped at 70% to 75% and comes down as the risk goes up.
| Item | Typical | What moves it |
|---|---|---|
| Rate, cleanest adverse cases | From around 0.80% pm | Historic, satisfied, low LTV, strong exit |
| Rate, typical adverse cases | 0.95% to 1.5%+ pm | Severity, recency, LTV and exit |
| Maximum LTV | Up to 70% to 75% | Lower for recent or severe issues |
| Demerit loading | About +0.15% to +0.25% pm | Number and recency of entries |
| Term | 3 to 24 months | Your sale, refinance or bridge-to-let timing |
| Arrangement fee | 1% to 2% | Lender, risk and loan size |
| Minimum loan | From around £26,000 to £50,000 | Depends on the lender |
| Broker fee | None upfront | We're paid by the lender on completion, disclosed before you proceed |
Does bad credit always mean a higher rate? Not always. An older, satisfied issue below most lenders' thresholds often makes no difference at all. Even where there is a loading, the gap with clean credit is often smaller than people expect, and lowering your LTV or offering more security is one of the most reliable ways to narrow it.
See your own figures
Pick what's on your credit file and the calculator applies a typical rate and LTV for that profile. No credit search.
Routes and structures
Closed or open bridge?
The exit structure matters more on adverse cases than almost anywhere else, because it's the lender's main counterweight to the credit risk. A closed bridge, with an exchanged sale or confirmed refinance, is usually the stronger route and prices better. An open bridge is still fundable but needs a more convincing plan.
Bridge-to-let
The bridge funds the purchase or works now, with a pre-assessed move onto a buy-to-let mortgage once the property, tenancy or your credit position is ready. It suits landlords and SPVs whose credit issue will have aged, or whose IVA or DMP will be nearly finished, by the time of the refinance. Have the future buy-to-let lender's view of your credit checked before you complete. See bridge-to-let.
Second and equitable charges
If you want to raise money without disturbing your mortgage, a second charge bridge sits behind it, assessed the same asset-led way. An equitable charge can help when your first lender refuses consent, but not when consent was refused because of arrears on that mortgage. Those arrears need resolving as part of the case.
Common property routes
Auction purchases
Fast completion where a mortgage couldn't meet the deadline whatever your credit. Auction bridging
Refurbishment
Buy, improve, then refinance or sell. Refurbishment bridging
HMO projects
Convert, license and let before an HMO mortgage. HMO bridging
Refinancing
Clear arrears or replace a maturing loan. Refinance bridging
Development exit
Completed or nearly complete schemes. Development exit
Land and commercial
Asset-led lending extends here too. Land and commercial
Bridging compared with the alternatives
| Option | Speed | Credit flexibility | Best for |
|---|---|---|---|
| Bad credit bridging | Days to weeks | High, asset-led | Time-sensitive purchases, raising capital, auctions |
| Adverse credit mortgage | Weeks to months | Moderate, still income-based | Long-term ownership with no deadline |
| Secured loan | Weeks | Moderate | Longer-term borrowing without touching the first mortgage |
| Guarantor lending | Weeks | Depends on the guarantor | Where a strong guarantor is willing |
| Unsecured personal loan | Days | Low, score-led | Small amounts only |
The process, and how quickly it can complete
A decision in principle often comes within 24 hours, and straightforward cases commonly complete in 1 to 2 weeks.
Feasibility, without a hard search
We look at the property, the loan, every credit issue and your exit, and work out which lenders will realistically help, before anything is submitted.
Indicative terms
Rate, LTV, interest type and any conditions linked to your credit profile, up front.
Valuation and legals
AVM, desktop or full valuation, with solicitors instructed at the same time. The lender runs its credit search at application.
Completion
Funds released once underwriting, valuation and legal checks are done.
What to have ready
Underwriters decline far more cases for missing context than for the credit issue itself. A case with a clear explanation reads very differently from a bare credit file, even when the facts are the same.
About your credit
- A copy of your credit file, with dates, amounts and status
- A short explanation of each entry: what happened, when and why it won't happen again
- Proof of resolution, such as satisfaction letters or IVA or DMP payment history
- Proof of funds to clear any arrears, if relevant
About the deal
- Property address, value, tenure and existing charges
- A specific exit: sale comparables, a refinance agreement in principle or an evidenced capital event
- Company or SPV documents if borrowing through a company
Common mistakes that get adverse cases declined
Applying to lots of lenders directly
Each hard search can make your file look worse. A broker checks feasibility first without one.
A vague exit
"I'll sell it" with no comparables, or "I'll refinance" with no lender in mind, is the most common reason a strong property case still gets declined.
Not disclosing everything
An entry found halfway through underwriting damages trust and costs more time than disclosing it on day one.
Asking for the maximum LTV
Leaving a few percent of headroom gives the lender the flexibility it needs to say yes.
Bad credit bridging loan FAQs
The key questions
Can I get a bridging loan with bad credit?
Yes. Specialist bridging lenders regularly lend to people with CCJs, defaults, arrears, IVAs and past bankruptcy, because they focus on the property, the equity and how you'll repay. Bad credit usually changes the rate and LTV rather than causing a decline.
Can I get a bridging loan with a CCJ?
Yes. Lenders look at how old the CCJ is, how much it was for, how many you have and whether it's satisfied. An older, satisfied, low-value CCJ often makes little or no difference. A recent unsatisfied one usually means a small rate loading. Satisfying it before you apply is the single most effective thing you can do.
Can I get a bridging loan with defaults?
Yes, on much the same basis as CCJs: recency, value and whether it's settled all matter. One historic default is far easier than several recent ones. Two or more in the same year usually means an underwriter reviews the case, which is still fundable with good packaging.
Can I get a bridging loan with an IVA?
Often, yes. Specialist lenders consider both active and completed IVAs, looking at when it started or finished and whether payments have been kept up. An active IVA usually means more scrutiny of the exit and around 60% to 65% LTV.
Can I get a bridging loan after bankruptcy?
Yes, once you're discharged. A growing number of specialist lenders will help, typically at 60% to 70% LTV, especially a few years after discharge with no adverse credit since. Undischarged bankrupts are rarely fundable.
What rates should I expect on bad credit bridging?
From around 0.80% a month on the cleanest adverse cases. Most adverse cases price between 0.95% and 1.5% a month or more, depending on how serious and recent the issue is, the LTV and the exit. The riskiest profiles can approach 2%.
What LTV can I get with bad credit?
Up to 70% to 75% where the adverse credit is older and satisfied, falling to around 60% to 65% for an active IVA, discharged bankruptcy or several recent issues, and 50% to 60% after a repossession. On a £400,000 property, that's roughly £240,000 to £300,000 before fees.
Does bad credit always mean a higher rate?
No. Small or satisfied entries below most lenders' thresholds often make no difference. Where there is a loading, it's commonly around 0.15% to 0.25% a month per recent demerit, and a lower LTV or extra security can often offset it.
How quickly can a bad credit bridging loan complete?
A decision in principle often comes within 24 hours, and straightforward cases commonly complete in 1 to 2 weeks. Having your credit explanations and exit evidence ready from day one makes the biggest difference.
Will a hard credit search happen at enquiry stage?
No. Our eligibility check and calculator don't run a credit search. We match your case to lender criteria first, and a lender only runs a search once you choose to apply.
CCJs, defaults and arrears
Does a satisfied CCJ still count against me?
Much less than an unsatisfied one. Many lenders ignore a satisfied CCJ under about £3,000, while an unsatisfied one of the same size counts as a demerit.
How long does a CCJ stay on my credit file?
Six years from the judgment date, whether or not you pay it, unless you pay it in full within a month, in which case it can be removed. Satisfaction still makes a big difference to lenders.
How many CCJs or defaults is too many?
There's no fixed number, but two or more in the same 12 months usually means underwriter referral rather than standard criteria. It's still fundable with a clear explanation.
Can I get a bridging loan with mortgage arrears?
Often, yes, especially if the bridge clears them. Lenders look at the longest run of consecutive missed months in the last year rather than the total.
Can a bridging loan clear my mortgage arrears?
It can. Many bad credit bridges repay a mortgage in arrears and refinance the whole position, which stops any repossession action, with the exit planned from the start.
Insolvency and other issues
Can I get a bridging loan with a DRO or DMP?
Yes. With a DRO, lenders focus on how your position has improved since. A DMP is informal, so it's viewed more flexibly than an IVA, provided you've kept it up.
Can I get a bridging loan after a repossession?
It's possible, but expect fewer lenders, around 50% to 60% LTV and close scrutiny of your exit.
Does payday loan history matter?
One repaid payday loan rarely matters. A recent or repeated pattern can concern lenders more than the amounts suggest.
Practical questions
What credit score do I need?
Most specialist bridging lenders don't use a minimum score. They review the specific entries on your file instead.
Is there a no credit check bridging loan?
Not literally. "No credit check" usually means no automated scorecard decline. The lender still reviews your file, but the decision rests on the property and the exit.
Can I apply through a limited company with bad credit?
Yes. Directors usually give personal guarantees, so their credit is considered, but in context alongside the property and the exit.
Can I reduce my rate by offering more security?
Often, yes. Extra security or a lower LTV directly reduces the lender's risk and is one of the most reliable ways to improve pricing.
Do I need to disclose old credit issues?
Yes, always. Lenders see the full file anyway, and non-disclosure damages trust far more than the entry itself.
Is bad credit bridging regulated?
Only if the property is, or will be, your home or a close family member's. Aura Capital arranges unregulated bridging. For regulated cases we arrange an independent FCA-authorised adviser at no cost to you. See regulated bridging loans.
Is it worth using a broker?
For adverse credit, usually yes. Many specialist lenders only work through brokers, and knowing how each lender scores demerits and insolvency can change the outcome.
Who wrote this page
Harry Baker
Harry holds an MSc in Real Estate & Finance from the University of Reading. He arranges bridging for borrowers with CCJs, defaults, IVAs and past bankruptcy across England, Scotland and Wales.
- Team transacted
- £500m+
- Lender panel
- 50+
How we compiled the figures
Rates, LTV bands and demerit thresholds reflect typical specialist lender criteria across our panel, reviewed monthly. Every case is priced individually. Worked examples are illustrative composites.
Related bridging products
Each product page has its own criteria and rates.
Bad credit doesn't mean no funding
Send us the credit issue, the property and your exit. We'll tell you honestly, the same day, which lenders will consider it and what the likely rate and LTV look like. No upfront fees.
Your property may be repossessed if you do not keep up repayments on a loan secured on it. Bad credit bridging applications are subject to underwriting, valuation, legal due diligence, credit review and exit assessment. Figures are indicative, based on our lender panel in October 2026. Aura Capital is a trading name of Chammosair Limited, registered in England & Wales, company no. 15786496. Aura Capital is a broker, not a lender, and is not authorised or regulated by the Financial Conduct Authority. We do not arrange regulated loans or give financial advice. On regulated cases we arrange an independent FCA-authorised adviser.