Bridging Loans for Bad Credit or Adverse History
Fast Property Finance, Even with Bad Credit
Bridging Loans for Bad Credit & Adverse History
Getting finance isn’t always easy if you’ve had credit challenges. Defaults, CCJs, missed payments, or arrears often mean mainstream lenders say no. But with bridging loans, there are specialist solutions.
At Aura Capital, we help clients with bad credit or adverse history access fast bridging loans at market-leading rates. Unlike traditional mortgages, our lenders look at the property and your exit strategy, not just your credit score.
What is a Bad Credit Bridging Loan?
A bad credit bridging loan (also known as adverse credit bridging finance) is a short-term loan secured against property, designed for borrowers who don’t meet high-street lending criteria.
It can help if you have:
County Court Judgments (CCJs)
Defaults or missed credit payments
Mortgage arrears
IVAs or past bankruptcies
Low or damaged credit scores
Bridging lenders take a more flexible, asset-focused approach, making finance possible where others decline.
Why Use a Bad Credit Bridging Loan?
Buy property quickly – especially at auctions or private sales
Refinance existing debt – repay loans or arrears before repossession
Fund refurbishments – improve property condition to qualify for long-term finance
Release equity – unlock cash from property despite adverse history
Access specialist lending – whole-of-market options via Aura Capital
Typical Bad Credit Bridging Loan Terms
Loan sizes: £50,000 – £25m+
Rates from: 0.65% per month (slightly higher than prime rates, still market-leading)
LTVs: up to 70–75% (sometimes higher with additional security)
Terms: 3–18 months
Funding speed: 7–14 days (as fast as 5 days in urgent cases)
How Bad Credit Bridging Loans Work
Initial enquiry – Aura Capital reviews your property and exit plan.
Whole-of-market search – we approach lenders open to adverse credit.
Approval – flexible underwriting focuses on asset value, not just credit history.
Funding – loans can complete in under 2 weeks.
Exit – repay via sale, buy-to-let, or long-term refinance once credit improves.
Example Scenarios
Scenario 1: Auction Purchase with CCJs
An investor with past CCJs wins a property at auction. High street lenders refuse, but Aura Capital arranges a bridging loan at 70% LTV, completing in 9 days. The investor refurbishes and refinances onto a buy-to-let mortgage.
Scenario 2: Avoiding Repossession
A homeowner in arrears faces repossession. Aura Capital secures a bad credit bridging loan, paying off arrears and stopping court action. After stabilising their finances, the borrower refinances onto a mainstream mortgage.
Benefits of Adverse Credit Bridging Finance
Fast access – even with poor credit, completions in 7–14 days
Market-leading rates – exclusive broker-negotiated terms
Flexible criteria – lenders consider the deal, not just the score
Whole-of-market access – dozens of specialist lenders via Aura Capital
Exit-focused lending – structured around your repayment plan
Risks & Considerations
Higher costs – adverse credit loans carry higher interest than prime bridging
Short-term – typically 3–18 months, not a permanent solution
Exit strategy required – lenders won’t approve without a clear repayment plan
Repossession risk – as with all secured loans, defaulting can result in property loss
Frequently asked questions
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No—many lenders are willing to lend if your exit strategy is sound.
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CCJs, defaults, arrears, IVAs, and even discharged bankruptcies may be considered.
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Not at all—bridging lenders focus more on security and repayment method.
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Typically 3–10 working days from application.
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Usually up to 18 months.
