Adverse Credit Bridging Loans
An adverse credit (also known as bad or poor credit) bridging loan is a short-term, property-backed loan designed for borrowers who may not meet traditional lending criteria due to their credit history. Unlike many banks and mainstream lenders, alternative lenders can take a more flexible approach, looking beyond credit scores to assess the overall strength of the deal.
At Somo, lending decisions are primarily based on the value of the security property and the proposed exit strategy. This means borrowers with CCJs, defaults, missed payments, IVAs, CVAs, bankruptcy or other credit issues may still be able to access funding when traditional finance isn't available.
Key features:
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Asset-led decision-making: Lending is primarily based on property value and available equity, not the borrowers credit file.
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Underwriting driven by the exit strategy: The exit strategy is central to the underwriting - sale, refinance or a credible repayment strategy.
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Credit file considered: The credit file will always be reviewed but does not need to be perfect to be considered.
Adverse credit bridging loans can be suitable for a wide range of borrowers, including:
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Property investors
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Landlords
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Developers
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Business owners
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Self-employed individuals
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Borrowers refinancing existing debt
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Clients facing urgent deadlines or time-sensitive opportunities
Whether the adverse credit is historic or more recent, every case is assessed individually. Rather than relying solely on automated credit scoring, Somo considers the circumstances behind the credit profile, the security available and the proposed repayment strategy.
Does this sound like you or your client? Speak to our friendly team:
What is an Adverse Credit Bridging Loan?
Who is an Adverse Credit Bridging Loan For?
Why Was I Rejected Somewhere Else?
Many mainstream banks and traditional lenders operate within strict lending criteria and automated credit-scoring systems. As a result, applications can be declined for reasons that don't necessarily reflect the strength of the overall transaction.
Common reasons for rejection include:
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Low credit scores
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Historic or recent CCJs
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Defaults or missed payments
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Mortgage arrears
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IVAs or CVAs
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Bankruptcy or insolvency
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Complex income structures
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Self-employed income
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Unusual properties
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Time-sensitive transactions
At Somo, we take a more practical view. Our experienced underwriters assess each case on its own merits, focusing on the value of the security property and the viability of the exit strategy rather than a single credit score.
Bad Credit Bridging Loan Rates and LTV
Monthly interest from
0.71%pm
Up to
75% LTV
Borrow from
£27.5k - £3m
Every adverse credit bridging loan is assessed individually, with rates and terms tailored to the specific circumstances of the case.
Key factors include:
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Property type
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Loan size
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Loan-to-value ratio
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Exit strategy
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Overall deal structure
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Credit profile and circumstances
Unlike many traditional lenders, adverse credit does not automatically exclude a borrower from consideration. Our team will review the full circumstances of the transaction to determine the most appropriate loan amount, interest rate and LTV.
How Quickly Can a Bad Credit Bridging Loan Complete?
Speed is often one of the main reasons borrowers choose bridging finance.
Somo can provide an initial lending decision in as little as 30 minutes, helping borrowers understand their options quickly. Completion times vary depending on the complexity of the case, valuation requirements and legal process, but our streamlined underwriting and experienced legal partners help keep transactions moving efficiently.
Where suitable, AVM-backed assessments may be available to further accelerate the process.
Common Uses for Bad Credit Bridging Loans
Adverse credit bridging finance can support a wide variety of scenarios, including:
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Refinancing Existing Borrowing
Replace an existing bridge, private loan or other short-term facility approaching maturity.
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Auction Purchases
Secure auction properties within strict completion deadlines.
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Preventing Repossession
Raise capital quickly to address urgent financial pressures and protect property assets.
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Property Refurbishment
Fund refurbishment projects where traditional lenders may be unwilling to lend.
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Capital Raising
Release equity from residential, commercial or semi-commercial property.
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Tax Liabilities
Address outstanding tax obligations where fast access to capital is required.
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Below Market Value Purchases
Move quickly on discounted property opportunities from motivated sellers, auctions or off-market transactions.
What We Need to Assess a Bad Credit Bridging Loan
One of the advantages of bridging finance is the straightforward application process.
To assess a case, we will typically require:
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Details of the security property
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The loan amount required
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The purpose of the loan
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Details of the proposed exit strategy
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Information relating to any existing borrowing secured against the property
Income verification and affordability assessments are not typically required under our Valuation Only™ product, helping to simplify the process for borrowers with complex circumstances.
Case Studies
