Fast Bridging Loan with Low Credit Score to Buy Before Sale

In today’s world of credit cards, payday loans and buy now pay later spending options, it can be surprisingly easy to find yourself with a low credit score.  

Fortunately, a bad credit record doesn’t close the door to bridging finance – it might reduce your options, but with a good broker in your corner you can still be eligible for a bridging loan to fulfil your property ambitions.  

The Scenario

This client came to us looking for a standard ‘buy before sell’ bridging loan.  

They were looking to purchase a new home in North Wales for £280k while they waited for their existing property to sell.  

Their current home was mortgaged, but they had built up roughly £150k of equity in the property that they planned use to fund their new purchase, along with a generous deposit from their father to reach the full value. 

This is a textbook bridging loan scenario: not wanting to lose out on a new property while you wait for a slow sale on your current home.  

The Solution 

While a bad credit score can rule out certain bridging lenders – it isn’t a lost cause when it comes to securing a loan.  

Our broker knew a handful of lenders that would look at this client’s application, and set to work in liaising with each to establish the best option.  

But with competition fierce for the property our clients were looking at, we also needed to move fast. 

In order to speed up the process and save our client from paying for an extra valuation fee, we managed to secure the loan solely against the property the client was buying. The existing home that was being used as the exit for the loan wouldn’t need to be used as security. 

In just 8 calendar days we had an offer agreed, and the full funds were secured in just 33 calendar days – exceptionally quick given the circumstances.