Bridging loans, being a form of finance, are requesting a variety of credit checks in order to be approved from your provider of choice. Let’s try and analyse the world of bridging finance for the ones who don’t have a great credit history.
Can I Apply For Bridging Finance If I Have Bad Credit?
Realistically speaking, the only reason why a bridging loan plan won’t be approved would be because of the exit route, which, if not properly verified and checked by the broker, would impact the integrity of the plan. In general, though, the chances of a bridging loan not being approved are extremely low, even with a bad credit score, which leads us to a clear answer to the above question: yes, it is possible to apply for bridging finance if you have bad credit.
What About No Credit Checks?
If you’re looking for any form of bridging finance, as the name states, a credit check is required so, unfortunately, the answer to this question would be “No, you can’t apply for it”. Bridging loans “with bad credit” are different than bridging loans “with no credit check”.
The Importance Of Deposit
As you may understand, logically speaking, a deposit is vital when applying for bridging loans with bad credit, as it will confirm the lender that you are able to cover up to 40% of the loan, resulting in far better rates for both you and himself. In general, the bigger the deposit, the better the loan plan will be.
Property Development and Bad Credit
The vast majority of applications for bridging loans with bad credit scores are related to property development. Bridging finance within property development (also known as development finance) is related to expanding an existing building or restructuring it into (maybe) a number of new flats/separated rooms. The above-mentioned guidelines apply for development finance as well.
Bridging finance in all its forms is easily accessible even if you have bad credit. Make sure you can provide your lenders with a healthy deposit worth 40% of the loan and everything will pretty much be sorted.