Bridging Loans For Bad Credit

There are various bridging lenders that will consider a history of bad credit.

Using your property as security, it is a good starting point because you are leveraging the asset’s value in order to obtain the funds you need. At Octagon Capital, we work with non-status bridging lenders that are willing to work with customers with adverse credit and they do not use credit checking as part of their decision process. Instead, the lenders use their experience to understand the value of your potential project and your plans for it too. To receive a no obligation quote, simply contact us using the form below.

Get a Personal Quote

  • By submitting this form I agree to being contacted by SPF Short Term Finance and I have read and accept the Terms and Conditions.

How to Apply

  1. Start by filling in your name, email address, contact number and some information about your project into our form. Your enquiry will be sent immediately to our partner, SPF Loans , who will contact you by email or phone.
  2. Our partner SPF Loans will provide you with some indicative loan figures stating how much you would potentially borrow and the interest rates charged. If you are happy with this, you can complete a simple form to proceed.
  3. If your plans for the project meet the initial criteria, you will be given a ‘decision in principle’ from one of our featured lenders which confirms your loan offer provided that everything else stacks up i.e property valuation and legals.
  4. An official valuation is carried out on the property in question, usually be a RICS valuer to get an accurate value of the estate. A valuation costs a few hundred pounds, depending on the size of the property and can be available in a few days.
  5. If your solicitor and the lender’s terms match up, funds can typically be transferred within 7 working days, within one lump sum.

Our Lenders

roma finance

Bridging Loans With Bad Credit – How it Works

If you have poor credit, there may be some slight adjustments to your loan agreement, including:

  • Lower LTV (whilst the maximum offered by most lenders we feature is around 70% to 75%, this may be slightly lower for those with bad credit).


  • Elevated interest rate – the rates charged by bad credit lenders is slightly higher than regular lenders to mitigate the potential risk of default.


  • No lending on primary residence – for non status lenders, they typically will not lend to someone if it is their primary residence i.e where the person lives. Your options may involve borrowing against another property, for business or investment purposes.

What Alternatives Are Available?

Mezzanine finance: This is a useful option which combines part loan and part giving up a share of your overall profit. Since the lender is taking on more risk, they want a piece of the potentially lucrative opportunity. This is a way to finance high risk ventures in property but also helps those with poor credit histories. Read here about our mezzanine finance lenders.

Improving your credit score: There are several ways nowadays to improve your credit score. The simple ways are to add yourself to the electoral roll (if you haven’t already), close any credit cards that you do not use, repay any loans early that you can afford to do so and also get in the habit of paying loans on time.

Whilst this is not easy, there are specific credit cards designed to help improve your credit rating and if you have successfully cleared out other personal or short term loans, this will reflect positively on your credit file. You can always access your report from the UK Government for just £2 and you can pick out what you can improve.

Added security: You can always look at adding further security to your existing project which may be considered by the lender of choice. This could include adding other valuables or asset such as a car, our having someone to be your guarantor to co-sign your loan agreement.

Avoid short term loans: You probably want to avoid the payday route as this will could be deemed negatively by a potential mortgage advisor. Instead it is better to promote a cleaner credit profile and improving your credit score is a good way to achieve this.

bad credit