The answer is yes – because not all bridging loans need income or even employment.
Unlike standard mortgages which look at your income, affordability and employment status, bridging loans look at two things: the property’s value and your repayment strategy.
Whether you’re between jobs, self employed with irregular income or someone with assets but no regular income, bridging finance may work for you.
Let’s look at how these loans work and what really matters to lenders.
What is a Bridging Loan?
A bridging loan is a short-term property loan that gets approved much faster than a standard mortgage.
They typically last from 3 to 36 months and provide quick access to larger sums of money – usually starting from £150,000 and reaching well into the millions.
Interest rates on bridging loans are higher than normal mortgage rates, remember that you’ll only be paying it for a short time. They’re designed to help you seize opportunities or solve short-term funding gaps, not for long-term borrowing.
Think of a bridging loan as a temporary funding solution.
You might use one to buy a property before your current home sells, purchase at auction where you need funds within 28 days, or renovate a property that traditional lenders won’t touch.
Read more: A Guide to Bridging Loans
How Bridging Loans are Different to Traditional Mortgages
Standard mortgages and bridging loans serve different purposes.
Standard mortgage lenders want to know everything about your income – payslips, tax returns, employment contracts. They’re setting up for a long term relationship, often 25 years or more and mortgage affordability is key to their assessment.
Bridging lenders think differently.
They care most about the property itself and your repayment strategy.
While a standard mortgage takes months to arrange, a bridging loan takes days. Traditional lenders look at your monthly income but bridging lenders look at the bigger picture – how you’ll repay the full amount when the loan ends.
This makes them particularly useful if you’re between jobs, self-employed with irregular income, or asset-rich but cash-poor.
Get access to expert brokers and specialist bridging lenders
What Really Matters to Bridging Lenders?
Property Value and Condition
Your property is the foundation of a bridging loan application. Lenders will request a valuation to assess its current market value, condition, and sales potential. They’re looking at the bigger picture – how easily could they recover their money if things went wrong?
Location matters too.
A property in a desirable area with strong market demand provides better security than one in a less popular location. The valuer will look at recent sales of similar properties and current market conditions to determine a realistic value.
Read more: What Properties Can A Bridging Loan Be Secured Against?
Your Exit Strategy
This is where bridging loans really differ from long-term mortgages.
Instead of focusing on monthly payments, lenders want to know how you’ll repay the entire loan when it ends. Common exit strategies include selling the property, refinancing to a traditional mortgage, or using proceeds from another property sale.
This is why monthly affordability is not important to them. In fact most bridge loans don’t have any monthly payments, the interest is added to the loan each month and then everything is paid back in one go.
You’ll need to provide evidence that your strategy is realistic and achievable within the loan term. This might include estate agent valuations, a mortgage agreement in principle, or proof of funds from another source.
Read more: What are some common exit strategies for bridging loans?
Getting Approved Without Regular Income
Many people successfully use bridging loans without having a regular income.
Property developers often use them between projects when they don’t have a steady income stream. Retirees might use them to downsize or renovate, relying on their assets rather than regular earnings.
Business owners with irregular income patterns can qualify based on their overall financial position rather than monthly income.
Instead of payslips, you might show lenders your property portfolio details, investment documentation, pension statements, or proof of incoming funds.
What matters is demonstrating that your exit strategy is solid and achievable.
Read more: Who Can Get a Bridging Loan?
Do You Need a Good Credit Score?
Your credit score isn’t as important for bridging loans as it is for other types of mortgages.
While lenders will check your credit history, they’re much more flexible about what they’ll accept. This is because they’re primarily looking at your property’s value and your exit strategy rather than your credit rating.
That said, having bad credit might affect your interest rate or the number of lenders willing to work with you.
Some situations that won’t automatically stop you getting a bridging loan include:
- Previous late payments
- A default or CCJ that’s been settled
- Missed mortgage payments in the past
- Being declined by other lenders
- A thin credit file due to living abroad
Think about it this way – if you’re buying a property worth £300,000 and only need to borrow £180,000 (60% loan-to-value), most lenders will be comfortable with this even if your credit isn’t perfect.
The property’s value provides them with enough security to offset the risk.
Some lenders even specialise in helping borrowers with credit issues. They might charge slightly higher rates, but they understand that past problems don’t always reflect your current situation. This is particularly true if you have a strong exit strategy and plenty of equity in your security property.
And there are a small number of lenders that don’t require any credit checks. These non-status bridging loans are more expensive but can be arranged really quickly as credit searches are not needed.
Related reading: Can you get a bridging loan with bad credit?
Understanding the Costs
Before taking out a bridging loan, you need to understand all the costs involved.
The monthly interest rates are higher and you’ll also pay an arrangement fee, usually 2% of the loan amount. There are valuation costs based on the property value, and you’ll need to budget for legal expenses on both sides.
You pay for your own legal costs and the lenders.
Read more: Are bridging loans expensive?
The Application Process
Applying for a bridging loan is usually straightforward but thorough.
You’ll need to provide details about the property, evidence of your exit strategy, and standard identity verification documents. Most applications complete within 1-2 weeks, though some can be faster when everything’s in order.
Working with a specialist broker will make the process smoother and give you access to more lenders. They know which lenders are most likely to approve your specific situation and can help you prepare a strong application.
If the reason for needing a loan is to raise money quickly, you will need an experienced solicitor who is familiar with bridging loans.
Next Steps
At Respect Mortgages, we specialise in connecting you with experienced brokers who are experts in arranging short-term secured finance. They’ll assess your situation and find appropriate solutions, regardless of your income status.
Ready to explore your options?
Contact us today, and we’ll introduce you to an expert who can explain your choices and help determine if bridging finance suits your needs.
Frequently Asked Questions
Yes, bridging loans are secured against property rather than income, so employment status isn’t a primary concern. Lenders focus on your property’s value and exit strategy.
Read more: Who Can Get a Bridging Loan?
There’s no minimum income requirement, primarily because there are no monthly repayments.
Bridging lenders assess your application based on the property’s value and your repayment strategy rather than regular income.
Loan amounts typically range from £150,000 to £25 million, based primarily on the property’s value. Most lenders offer up to 75% of the property’s value.
Yes, retirees can obtain bridging loans. Lenders consider assets, pension income, and property value rather than employment status.
The minimum value would be £200,000.
Yes, bridging loans go up to 75-80% loan to value. So you need to budget for a 20-25% deposit.
Read more: Do you need a deposit for a bridging loan?
