Soft and hard searches
A soft search lets a firm see parts of your credit file without leaving a mark that other lenders can see. A hard, or full, search is recorded on your file and visible to other lenders for a period. A cluster of hard searches in a short time can make lenders cautious.
Seeing indicative quotes on Instant Quotes does not involve a credit search. If your case goes forward, the lenders you choose run their own identity and credit checks, which may include a hard search. Applying to one or two well-matched lenders, rather than many at once, keeps your file cleaner.
Is a bridging loan shown on my credit file?
It depends on the lender and the borrower. Some bridging lenders report loans to individuals to credit reference agencies, and others do not. Loans to a limited company are generally not recorded on your personal file, although personal guarantees and director checks are part of the lender's review. Regulated bridges are usually reported in the same way as mortgages.
Where a bridge is reported, it appears as secured borrowing with no monthly payments if interest is retained or rolled up. Repaid on time, it shows as settled.
Will it affect my mortgage application?
Many bridges are repaid by a mortgage, so the mortgage lender will see the bridge and expect it to be repaid on completion. That is normal and does not count against you. What matters is:
- Whether the bridge is up to date and within its term
- Whether the property now meets the mortgage lender's criteria, for example after works
- Your income, outgoings and credit history as at the mortgage application
- Any other borrowing you took on during the bridge
If you plan to refinance, get a mortgage agreement in principle early and confirm the property and your circumstances fit before you rely on it. See bridging exit strategies.
When a bridge can harm your credit
A bridge that runs past its end date can go into default. Default interest, a recorded arrears position or enforcement action can all show on your file and make refinancing much harder. Speak to the lender early if the exit is slipping, and look at extension or refinance options before the end date. See can you extend a bridging loan and what if I cannot repay.
Checking your own file
Before applying, check your credit report with the main credit reference agencies and correct any errors. Statutory reports are free. Lenders will see what you see, and explaining an old issue up front is better than having it found during underwriting. If you have adverse credit, see bridging with bad credit.
Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Common questions
Does getting a bridging quote affect my credit score?
Not on our site. Seeing indicative quotes on Instant Quotes does not involve a credit search. Lenders run their own checks only if your case goes forward.
Do bridging lenders do a hard credit search?
Most run a full search at application. Some use a soft search at the decision in principle stage, so ask the lender which it uses.
Will a bridging loan stop me getting a mortgage?
Not if it is up to date and is being repaid by the mortgage. Mortgage lenders often see bridges being refinanced and assess the case on your circumstances and the property.
Does a company bridging loan show on my personal credit file?
Usually not, although the lender will check the directors and any guarantors.
This guide is for general information only and should not be treated as legal, tax or financial advice. Lender requirements depend on the property and your circumstances.
