Can I get a bridging loan with bad credit?

Yes. Many specialist bridging lenders assess cases on the strength of the security and the exit strategy rather than the borrower's credit history. CCJs, defaults, IVAs and bankruptcy are all considered on a case-by-case basis. The severity and recency of adverse credit will affect which lenders are available and the terms offered.

How quickly can a bridging loan complete?

Simple residential cases can complete in 5“10 working days. Fastest completions ” typically 48“72 hours ” occur where the lender already holds a live valuation or accepts an automated valuation, title is clean, and both parties' solicitors can act promptly.

Do I need to make monthly repayments?

Not necessarily. Many bridging loans allow interest to be "retained" ” deducted from the loan advance upfront ” so no monthly payments are required during the term. Alternatively, interest can be "rolled" onto the loan balance or serviced monthly if cash flow allows.

What is the maximum LTV on a bridging loan?

Most residential bridging lenders offer up to 70“75% LTV as standard, with some reaching 80% for strong cases. Commercial security typically attracts 60“70% LTV. Adverse credit, unusual property types or weak exits may result in lower LTVs.

What happens if I cannot repay the bridging loan on time?

The loan enters default, typically attracting significantly higher interest rates (often double the contracted rate) plus potential enforcement action including repossession. If you believe your exit may be delayed, contact us before the maturity date ” refinance options are far more accessible when the loan is still performing.

Is a bridging loan right for me?

Bridging finance is most suitable when speed, flexibility or circumstances that exclude conventional lenders make a standard mortgage impractical. It is a higher-cost, short-term solution ” if a conventional mortgage is available and the timescale allows, that will usually be the lower-cost option.

Bridging Finance

Short-term secured loans for property investors and businesses who need to move fast. Adverse credit considered. Completions from 48 hours.

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No upfront fees · Business enquiries only · Min. £25,000

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What is Bridging Finance?

A bridging loan is a short-term secured finance facility ” typically between 1 and 24 months ” used to "bridge" a gap between an immediate financial need and a longer-term funding solution. Unlike a traditional mortgage, bridging finance is designed for speed and flexibility rather than lowest cost, making it the preferred tool when time is critical or when conventional lenders cannot accommodate the borrower's circumstances.

Secured against property ” residential, commercial, land or a combination
Terms typically 1“24 months with flexible repayment structures
Interest can be retained, rolled up or serviced monthly
Lender decision often within 24“48 hours; completion within days
Adverse credit, complex structures and non-standard properties considered

How Does Bridging Finance Work?

Enquiry & Initial Assessment

You outline your requirement ” the property, loan amount, purpose and your exit strategy. A specialist assesses suitability and identifies the most appropriate lenders from the panel.

Indicative Terms

The shortlisted lender(s) provide indicative terms ” loan amount, rate, fees and conditions. You choose which to proceed with. No commitment at this stage.

Formal Application

A full application is submitted to the chosen lender with supporting documents: title register, valuation instruction, proof of identity and proof of exit.

Valuation

The lender instructs an independent RICS surveyor to value the security. This is the primary step that determines the final loan amount and LTV.

Legal Work & Offer

Both parties instruct solicitors. The lender's solicitor conducts title searches and due diligence. Once satisfied, a formal offer is issued.

Drawdown

Funds are drawn down to your solicitor's client account. On completion, the bridge is registered at Land Registry as a first (or second) charge against the security.

How is Bridging Finance Secured?

Bridging loans are secured against real property. The lender registers a legal charge ” typically a first charge ” at HM Land Registry. The charge gives the lender the right to repossess and sell the property if the loan is not repaid in accordance with the agreed terms. Security can be a single property or multiple properties (cross-charged). Acceptable security includes residential investment property, commercial premises, mixed-use, land with planning, semi-commercial and HMO property.

Exit Strategy

All lenders require a credible exit strategy before funds are released. Common exit routes include:

Refinance to a buy-to-let or term mortgage once works complete or property is tenanted
Sale of the security property
Sale of another property (proceeds repay the bridge)
Refinance to a commercial or semi-commercial mortgage
Injection of capital from a business, investor or sale of another asset
Completion of a delayed purchase chain

Is Bridging Finance a Good Idea?

Advantages

Fastest route to secured property finance ” days not months
Available where high-street lenders decline due to credit or property type
No monthly repayment required (interest retained or rolled)
Flexible loan-to-value up to 75“80% on residential security
Can bridge multiple properties as cross-security
Exit can be open (no fixed sale date required) with many lenders

Considerations

Higher cost than a term mortgage ” rates typically 0.7“1.5% per month
A credible exit strategy is mandatory ” lenders will decline without one
Valuation and legal fees apply even if the loan does not complete
Default penalties are significant if the exit is delayed beyond term

How to Secure Bridging Finance

Prepare Your Exit Strategy

Clearly identify how the bridge will be repaid ” sale proceeds, refinance or another source. This is the single most important factor in lender decisions.

Identify Your Security

Know the property address, approximate value and current title position (owned outright, with a mortgage, or being purchased). Multiple securities can be combined.

Assess Your Credit Position

Be upfront about any CCJs, defaults, bankruptcy or IVA history. Specialist lenders can work with adverse credit ” but only if it is disclosed early.

Submit an Enquiry

Select Lender and Apply

Once you are happy with the indicative terms, a formal application is submitted. We manage the process from here through to completion.

How Much Can I Borrow?

Loan sizes range from £25,000 to £25 million or more for the right case. The amount available depends on the value of the security, the loan-to-value (LTV) offered by the lender and your exit strategy.

Residential security: up to 75“80% LTV with most lenders
Commercial and semi-commercial: typically 65“70% LTV
Land without planning: 50“60% LTV
Land with planning: up to 65“70% LTV
Adverse credit cases may attract lower LTVs depending on severity
Cross-charging multiple properties can increase total loan amount

Want to calculate your exact costs?

Use our free calculator to model loan amount, monthly interest and total costs.

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What Are the Costs?

Arrangement feeTypically 1“2% of the loan amount, retained from the loan advance

Monthly interest rateTypically 0.75“1.5% per month depending on LTV, security and credit profile

Exit feeSome lenders charge 1% on redemption; others charge none

Valuation feePaid to the lender's RICS surveyor; varies by property value and location

Legal feesBorrower pays own solicitor costs plus a contribution to lender's legal fees

Broker feeArchangel charges no upfront or broker fees ” we are paid by the lender on completion

How Quickly Can I Get a Loan?

Simple residential bridging loans can complete in 5“10 working days from application where a desktop or AVM valuation is accepted. Physical valuations add 3“5 working days. Complex cases, commercial property and new builds typically take 2“4 weeks. Completions in 48“72 hours are possible for the right case with a lender holding a live valuation.

Eligibility Criteria & How to Apply

UK-based business, limited company, LLP or individual portfolio landlord/investor
Minimum loan £25,000, no formal maximum
Property security required ” residential, commercial, land or mixed
Credible exit strategy (sale, refinance or capital injection)
Adverse credit considered ” CCJs, defaults, IVA and bankruptcy history assessed case by case
Foreign nationals and expats considered by specialist lenders
First-time landlords considered for simpler transactions
No minimum income requirement for retained-interest loans

9 Example Uses of Bridging Finance

Auction Purchase

A property investor wins a lot at auction and needs to complete within 28 days. A bridging loan allows completion at speed before a buy-to-let mortgage is arranged.

Chain Break

A landlord's onward purchase is at risk because their buyer has pulled out. A bridge funds the purchase while the sale property is remarketed.

Refurbishment Before Mortgage

A property is unmortgageable in its current condition. A bridge funds the purchase; a term mortgage is arranged once refurbishment is complete.

Capital Raising

A business director raises working capital against an unencumbered investment property without selling it.

HMRC Tax Bill

A company faces an urgent HMRC demand. A bridge against investment property provides immediate capital to settle the liability.

Pre-Sale Renovation

A homeowner (acting as a business ” via a company) wants to refurbish before selling. A bridge funds works to maximise sale price.

Probate Property

A property inherited via an estate needs to be released quickly. A bridge allows beneficiaries to access equity while the estate is administered.

Land with Planning Gain

A developer purchases land before formal planning approval to secure it from competitors, bridging to a development loan once consent is granted.

Director with Adverse Credit

A director with historical CCJs needs finance. A specialist bridging lender assesses the deal on asset strength and exit rather than credit score alone.

Ready to proceed?

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