Bridging Loans for Bad Credit or Adverse History
Fast Property Finance, Even with Bad Credit
Fast, flexible property finance — even when your credit isn’t perfect
Access to funding shouldn’t end because of a few missed payments, an old CCJ, or a complex credit file.
At Aura Capital, we know that real-world investors and developers don’t always fit traditional lending boxes.
That’s why we specialise in arranging bad credit bridging loans — short-term property finance built around the asset and exit, not a credit score.
Whether you’re recovering from financial setbacks, working through a refinance delay, or have previous arrears affecting mortgage eligibility, our panel of lenders can deliver fast, pragmatic solutions — often completing within 5–10 working days.
Even if you’ve faced credit challenges such as CCJs, defaults, missed payments, or an IVA, you can still access competitive bridging finance for bad credit through Aura Capital’s lender panel. Our team specialises in finding lenders that assess your project on its asset value and exit strategy, not just your credit history — giving you a genuine second chance to move forward.
What Is a Bad Credit Bridging Loan?
A bad credit bridging loan (also called an adverse credit bridge) is a short-term secured loan used to buy, refinance, or release equity from property when mainstream lenders won’t help because of historic or recent credit issues.
It’s asset-based finance — meaning the property value and exit strategy matter more than your credit file.
Lenders consider the loan-to-value (LTV), the quality of security, and your repayment route (sale or refinance) to determine affordability and risk, rather than full credit scoring.
These loans typically run for 3–24 months, giving you time to stabilise your finances, improve credit, or complete your project before moving to cheaper, longer-term finance.
When bad credit bridging is used
Adverse credit bridging is a tool, not a last resort. It’s widely used by:
Developers whose mainstream development loans have expired or need refinancing while sales complete
Investors with historic defaults, CCJs, or missed payments who still hold strong property equity
Landlords consolidating debt or restructuring portfolios after arrears
Business owners using property to repay tax bills, settle creditors, or fund working capital
Individuals seeking fast finance after a declined mortgage application
Borrowers facing temporary cash-flow issues but expecting imminent liquidity from a sale or inheritance
Because bridging loans are secured against tangible property assets, lenders can remain comfortable even where personal credit history is less than ideal.
What counts as “bad credit” in bridging?
Each lender defines adverse credit differently, but most include:
Missed or late payments on loans, mortgages, or utilities
County Court Judgments (CCJs) or Defaults (satisfied or unsatisfied)
IVA or Bankruptcy history (usually acceptable after discharge)
Mortgage arrears
Pay-day loan history or high unsecured debt ratios
Historic repossessions or voluntary surrenders
In most cases, lenders look at context and timing.
A small, historic CCJ from years ago carries little weight if the property security and exit plan are strong.
Even recent issues may be overlooked where there’s robust equity and a credible refinance or sale strategy.
When Bad Credit Bridging Finance Is the Right Solution
Many investors and developers assume that a CCJ, IVA or a history of missed payments rules them out of property finance. That simply isn’t the case with asset-based short-term bridging. At Aura Capital we focus on the value of the property and the exit strategy, not solely on your credit history. A bad credit bridging loan can be the right solution when you need to act quickly – for example buying at auction, refinancing a current bridge, or completing a small refurbishment. If you have strong equity, a clear repayment route and a property that sells or refinances easily, you may qualify even if you’ve faced credit challenges in the past. This type of finance gives you breathing space, preserves your investment opportunity and allows you to move when others wait. It’s especially relevant when time, asset and exit matter more than typical high-street criteria.
How to Frame Your Bridging Application with Adverse Credit
When you’ve experienced credit issues, your bridging application must position your case clearly and focus on the asset and exit plan. First, provide a clear outline of the property – its value, condition, location, and how you will secure the loan against it. Then, emphasise your exit strategy: how and when you’ll repay the loan (sale, refinance, development exit). Lenders will examine your credit file, but will often set aside the credit score if the asset is robust and the exit is credible. Demonstrate that your past credit problems do not undermine your repayment ability—show ability to repay via the property value or the exit plan. Then compile any supporting documentation you can: purchase contracts, recent valuations, refurbishment quotes, remortgage offers. Presenting a tightly packaged application increases your chance of a favourable rate. At Aura Capital, we help clients with adverse history navigate this process and access bridging finance when many high-street lenders cannot.
How lenders assess bad credit bridging applications
Bridging lenders differ from banks. Their key questions are:
What’s the property worth today?
Valuation confirms the asset’s open-market value and resale potential.What’s the exit strategy?
A realistic route to repay the bridge — typically sale, refinance, or development exit.What’s the loan-to-value (LTV)?
Lower leverage offsets perceived risk. Most lenders offer up to 70–75% LTV; higher possible with extra security.What’s the borrower’s background?
Adverse credit matters less than honesty and realism. Lenders value transparency over perfection.Is the property marketable?
Prime or good-quality assets, even if tired, reassure lenders of liquidity if forced sale occurred.
If these fundamentals are solid, lenders are often comfortable despite imperfect credit.
Why bridging works for borrowers with bad credit
1. Focus on assets, not credit scores
The property provides the lender’s security. Your track record and exit matter more than old defaults.
2. Speed of completion
Because underwriting is simpler, approvals can be issued within 24 hours and funds released in 5–10 days.
3. Opportunity access
You can still buy at auction, refinance to avoid default, or release equity for cash-flow when banks say no.
4. Repair credit profile
Use the bridging period to clear arrears, satisfy CCJs, or demonstrate successful repayment — improving your future mortgage prospects.
5. Flexible structuring
Interest can be rolled up so you don’t service monthly payments, protecting cash flow while resolving short-term challenges.
Typical loan structure and terms
Loan size: £75,000 – £10 million+
Term: 3 – 24 months
Loan-to-value: up to 75% (sometimes 80% with additional security)
Interest rate: 0.9 – 1.5% per month, depending on risk and credit profile
Arrangement fee: around 2%
Exit fee: 0–1% (negotiable)
Speed: Indicative approval within 24 hours; completion in 1–3 weeks
Interest options: serviced, retained, or rolled-up
Lenders typically request a RICS valuation and instruct solicitors once credit checks confirm identity and ownership.
Example scenarios
Example 1 – Developer with missed payments
A developer in Leeds had two missed loan payments on a near-complete conversion.
Aura Capital arranged a £1.2 m refinance bridge at 70% LTV within 9 days, repaid the previous lender, and funded final works.
Units sold 3 months later — credit record improved, profits protected.
Example 2 – CCJ on credit file
An investor buying a mixed-use building had a satisfied CCJ from 2022.
Mainstream lenders declined. Aura secured £650 k on a 12-month bridge; exit via commercial mortgage after refurbishment.
Example 3 – Business cash-flow crisis
A trading company faced HMRC arrears and risked winding-up proceedings.
Using its warehouse as security, Aura sourced a £400 k bridge to clear debts and stabilise operations — all within two weeks.
Example 4 – Portfolio consolidation after IVA
A landlord post-IVA refinanced three HMOs under one £1.5 m facility, reducing cost and simplifying management.
Exit: portfolio term finance after 12 months of clean payment history.
Documents that help speed up approval
Property address, description, and value (desktop acceptable initially)
Existing loan statement or redemption figure (if refinance)
Borrower ID and company information
Credit summary (honest disclosure builds trust)
Exit plan with timeline
Tenancy or sale details (if applicable)
Schedule of security (if portfolio)
Providing these early allows Aura Capital to issue a same-day Decision in Principle.
Costs & fees explained
Bad credit bridging is slightly more expensive than standard bridging, reflecting lender risk — but remains cheaper than the cost of missed opportunities or default penalties.
Interest: typically 0.9–1.5% p.m.
Arrangement fee: 2% (added to loan)
Valuation: RICS or desktop
Legal fees: payable by borrower; dual representation possible for speed
Exit fee: often 0%, sometimes 1% on higher-risk cases
Broker fee: transparent and performance-based
Aura Capital always compares total cost of funds, not just headline rate, to deliver best net outcome.
Property types accepted
Standard residential investment property
HMOs and multi-unit freeholds
Mixed-use and semi-commercial buildings
Offices, warehouses, and light industrial units
Retail, hospitality, and leisure assets
Land with or without planning
Unencumbered property for equity release
Portfolios under company or personal names
Vacant or income-producing — both can qualify with the right structure and exit.
Common exit strategies
Even with bad credit, lenders approve loans when there’s a credible exit. Typical routes include:
Sale of the property once refurbishments or marketing complete
Refinance to a term mortgage after improving credit or income evidence
Portfolio refinance under a single long-term lender
Sale of other assets or inheritance proceeds
Business refinance or new facility following trading recovery
Aura Capital helps borrowers package the exit story clearly, increasing lender confidence and improving rates.
How Aura Capital structures bad-credit bridging
Initial consultation: quick overview of your situation and goals.
Indicative quote: within 24 hours, outlining loan size, rate, and term.
Underwriting: valuation and legal teams instructed simultaneously.
Completion: funds released — often within 5–10 working days.
Exit management: we support refinance or sale transition to ensure smooth repayment.
Every case is confidential, pragmatic, and handled by a dedicated bridging specialist who understands lender risk appetite.
You may also be interested in our Refinance Bridging Loans and Development Exit Finance options — both ideal routes if your current facility is nearing expiry or you’re preparing for refinance.
Rebuilding your credit during the bridge
A bridging loan isn’t only about survival — it’s a chance to reset.
During the term you can:
Clear legacy debts or defaults
Maintain clean payments on other commitments
Build lender references
Strengthen your file for long-term refinance
By the time the bridge redeems, many borrowers have rebuilt their credit sufficiently to access mainstream products at lower rates.
Rebridge or second-charge options
If you already have a bridge in place and need extra time, Aura Capital can arrange a rebridge — replacing the facility before expiry to avoid penalties.
Alternatively, if there’s strong equity and your first lender won’t extend, a second-charge bridge may provide a short-term buffer without disturbing the first loan.
Both solutions are available even where adverse credit remains present.
Risks and considerations
While bridging finance is fast and flexible, borrowers should always plan exits carefully.
Potential pitfalls include:
Over-estimating end values or refinance terms
Under-budgeting for interest or fees
Missing redemption deadlines (can trigger default interest)
Failing to disclose credit issues early — transparency matters
Not including rolled-up interest in the facility size
Aura Capital ensures each deal is structured conservatively so you remain protected and profitable.
What Counts as “Bad Credit” in Bridging Finance?
Many borrowers are surprised by how flexible specialist lenders can be. “Bad credit” doesn’t automatically prevent you from getting approved. Lenders will usually look at the overall strength of your deal — including the property’s value, your experience, and your exit plan.
Common forms of adverse credit that may still be accepted include:
– County Court Judgments (CCJs)
– Defaults or late payments
– Previous mortgage arrears
– Individual Voluntary Arrangements (IVAs)
– Discharged bankruptcies
Aura Capital works with lenders who understand that a poor credit history often stems from one-off circumstances, not financial mismanagement. If the numbers make sense, finance is still achievable.
FAQs
Can I get a bridging loan with CCJs or defaults?
Yes — many lenders will still approve if there’s strong equity and a clear repayment strategy.
Can I get finance after bankruptcy or IVA?
Yes, if discharged and circumstances are now stable. We have lenders comfortable with previous insolvencies.
Does bad credit increase my rate a lot?
Slightly — expect rates from around 0.8% p.m., compared with 0.7% for clean credit. The difference narrows as equity strengthens.
Can I refinance an existing bridge with poor credit?
Yes, through a rebridge facility, replacing your current loan before expiry.
Do I need proof of income?
Not always. Bridging is asset-led — income evidence helps but isn’t mandatory.
Can companies and SPVs borrow?
Yes. Most adverse-credit facilities are arranged through limited companies or SPVs.
How fast can I complete?
Approvals in 24 hours, completion in 5–10 working days, subject to valuation and legals.
Frequently Asked Questions About Bad Credit Bridging Loans
Can I get a bridging loan with CCJs or defaults?
Yes. Many specialist lenders will still approve bridging finance if your project and exit strategy are strong. Aura Capital packages your case to focus on the property and repayment plan, not past issues.
Do bad credit bridging loans cost more?
Rates can be slightly higher due to perceived risk, but the difference is often smaller than most expect — especially when working with an experienced broker who can access multiple lenders.
Will an IVA or bankruptcy stop me from getting finance?
Not necessarily. Some lenders will lend once the IVA is complete or bankruptcy is discharged. We’ll match you with those most likely to approve.
How can I improve my chances of approval?
Have a clear exit strategy, provide up-to-date valuations, and disclose your credit background upfront so we can structure the strongest proposal possible.
Why borrowers choose Aura Capital
Speed & certainty: DIPs in one day, completions within 1–2 weeks.
Specialist lenders: Access to 40+ bad-credit-friendly funds.
Tailored structuring: Interest roll-up, equity release, or rebridge options.
Transparency: Fixed fees and clear communication.
Experience: Decades of underwriting and property-finance expertise.
End-to-end support: From packaging to completion and onward refinance.
Talk to us today. Whether you’re recovering from credit issues or need fast refinance to protect equity, Aura Capital will structure a solution that fits your timeline and goals.
How to get started
To receive your indicative term sheet within 24 hours, send:
Property address and estimated value
Loan amount and purpose
Existing lender (if any)
Summary of credit issues (we’ll assess impact honestly)
Exit plan (sale, refinance, or other source)
We’ll compare offers across multiple lenders and guide you to the best option for your situation.
