At AF Credit, we regularly assist borrowers who have been declined by mainstream lenders because of their credit history. While credit is still part of the assessment, it is often only one factor among many — and the strength of the property security and exit strategy can carry more weight than a borrower's credit score.
Yes. Many bridging lenders will consider applications from borrowers with adverse credit. Unlike traditional mortgage lenders, bridging lenders often place greater emphasis on the property value, available security, equity position, exit strategy and overall transaction strength — rather than credit scoring alone.
What Is Considered Bad Credit?
There is no universal definition of bad credit — different lenders assess risk differently. However, the following issues commonly affect mortgage applications and may prompt a borrower to look at bridging finance instead:
- Missed payments and mortgage arrears
- Defaults (satisfied and unsatisfied)
- County Court Judgments (CCJs)
- Debt Management Plans (DMPs)
- Individual Voluntary Arrangements (IVAs)
- Bankruptcy (current or discharged)
- Repossessions
- Payday loan usage
- High levels of unsecured debt
Mainstream lenders often apply strict, policy-driven rules to these issues. Bridging lenders are generally more interested in understanding the wider picture — the story behind the credit issue, how recent it was, and how it sits alongside the rest of the transaction.
Why Are Bridging Lenders More Flexible?
Traditional mortgage lenders focus heavily on affordability and credit scoring. Bridging lenders typically focus on:
Value, location, saleability and the lender's ability to recover their loan if required.
Borrowers with significant equity often present lower risk even where credit history is imperfect.
How and when will the bridge be repaid? Sale, refinance, or a combination — the clearer the exit, the stronger the case.
A default arising from a specific life event five years ago is very different from an ongoing pattern of financial difficulty.
There is a significant difference between a historic default from five years ago, a recent missed payment, an ongoing IVA, and a previous bankruptcy that has since been discharged. Understanding that context matters.
Can You Get a Bridging Loan With Defaults?
Often, yes. Defaults are one of the most common adverse credit issues we encounter. Key considerations include the number and value of defaults, whether they are satisfied or unsatisfied, their age, and the reason they arose. Historic satisfied defaults are typically viewed more favourably than recent unsatisfied ones — but neither automatically prevents a bridging loan.
Can You Get a Bridging Loan With a CCJ?
Yes, potentially. Many bridging lenders will consider borrowers with CCJs. The factors typically considered include whether the CCJ has been satisfied, the total value, the number of CCJs registered, and how recently they occurred. The presence of a CCJ does not automatically rule out bridging finance.
Can You Get a Bridging Loan After Bankruptcy?
Possibly. Many mainstream lenders impose lengthy restrictions following bankruptcy. Bridging lenders may be more flexible, particularly where the bankruptcy has been discharged, strong equity exists, the exit strategy is realistic, and the borrower has rebuilt their financial position. Every case is assessed individually.
Can You Get a Bridging Loan With an IVA?
Some lenders will consider borrowers with current or historic IVAs. The lender will typically review the IVA status and remaining term, repayment history within the arrangement, the strength of the property security, and the realism of the exit strategy. An IVA does not automatically prevent funding.
Mortgage Declined Due to Bad Credit
A mortgage decline does not necessarily mean the transaction is over. Many borrowers come to AF Credit after a mortgage application has been declined, a lender has reduced the borrowing amount, an auction deadline is approaching, or a property opportunity is at risk of falling through. In many cases, bridging finance provides a practical route forward where a conventional mortgage does not.
Bad Credit and Auction Property Purchases
Auction properties often require completion within 28 days. Many buyers discover too late that their mortgage lender is unable to proceed — because of credit history, property condition, or simply the time constraints involved. Bridging finance can provide the speed and flexibility required to complete the purchase within the required timeframe. See our auction finance guide for more detail on the 28-day completion process.
Additional Security Can Help
Where appropriate, AF Credit may consider additional security to strengthen the overall transaction — including additional investment properties, cross-collateralisation, second charge security, or equity in a main residence. This can widen funding options for borrowers whose credit history might otherwise limit their choices.
How AF Credit Assesses Adverse Credit Cases
AF Credit does not rely solely on credit scoring. We assess the whole transaction:
What happened, when, and why — including whether it was a one-off event or part of a pattern.
Financial stability today, not just what the credit file shows from the past.
The value, location and quality of the security — and the LTV position relative to any adverse credit.
A clear, realistic plan for repaying the bridge — through sale, refinance or another route.
Borrowers with significant equity can often present lower effective risk regardless of credit score.
The deal as a whole — not just one number from one credit file, but every factor that shapes the risk.
In some cases, borrowers with adverse credit can present lower overall risk than borrowers with perfect credit scores but weak property security or an unclear exit strategy.
A borrower agrees to purchase a property at auction. The mortgage lender declines the application due to historic defaults that remain visible on the credit file. The borrower has significant equity in their main residence and a clear refinance strategy once the purchased property has been refurbished. AF Credit provides bridging finance, allowing the purchase to complete within the auction deadline. Once the property has been refurbished and the borrower's credit profile has improved, the bridge is refinanced onto a long-term mortgage.
Frequently Asked Questions
Can I get a bridging loan with bad credit?
Yes. Many bridging lenders will consider borrowers with adverse credit histories. The security, equity position and exit strategy often carry more weight than the credit score alone.
Can I get a bridging loan with a CCJ?
Potentially. The outcome typically depends on the age, value and status of the CCJ — whether it is satisfied and how recently it occurred.
Can I get a bridging loan with defaults?
Yes. Historic and satisfied defaults are often viewed more favourably than recent unsatisfied ones. The number, value and reason for defaults are all considered.
Can I get a bridging loan after bankruptcy?
Possibly. Many lenders will consider discharged bankruptcies, particularly where strong security exists and there is a realistic exit strategy.
Can I get a bridging loan with an IVA?
Some lenders will consider both current and historic IVAs. The lender will look at the IVA status, repayment history and the strength of the security offered.
Does AF Credit lend to borrowers with poor credit?
Yes. AF Credit regularly considers applications from borrowers with adverse credit where there is sufficient security and a realistic exit strategy. We look at the whole transaction rather than applying rigid credit scoring criteria.