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Last updated on April 11th, 2025 at 12:50 pm
No, you do not necessarily need to have a salary to be approved for a bridging loan in the UK. Bridging lenders work with mostly property developers, investors and people that are self-employed and they understand that their applicant’s income might be based on the sale of a property or rental income.
What is a Bridging Loan and Why Might I Not Need a Salary For One?
A bridging loan or bridging finance is a popular source of funding to complete a property or transaction within a tight deadline. Available from private firms and investors, these types of loans are different to those from traditional banks and mortgage providers, with the ability to make fast decisions and complete funding in days or weeks, rather than several months.
Lenders are willing to take a more subjective view on their eligibility criteria and provide more personalised options and structured terms for the borrower.
Having a salary, job or income may not be essential for a bridging loan application to be approved since the property is being used as security and this is valuable to the lender. But understanding the borrower’s motives, plans, exit strategy and long term goals is essential for the lender to determine whether or not they will be able to pay back their loan.
The Difference in Criteria For Regulated and Unregulated Bridging Loans
If the bridging loan falls under regulated activity and is secured against your primary residence, this may be subject to income and affordability checks, because there are monthly interest repayments involved, as deemed suitable by the Financial Conduct Authority.
If your bridging loan falls under unregulated activity (see unregulated bridging loans), having a salary may not be necessary for approval because it is only repaid upon exit. Factors such as your exit strategy, having equity in the property, receiving rental income and a strong business plan may be sufficient.
| Criteria | Regulated Bridging Loan (For Residential Use – FCA Regulated) | Unregulated Bridging Loan (For Investment/Business Use) |
|---|
| Do you need a salary? | Preferred but not always required | No, but other financial factors are considered |
| Main Focus for Approval | Affordability & exit strategy | Exit strategy (e.g., property sale or refinancing) |
| Lender Income Assessment | Yes, income checks are typically required | No formal income checks in most cases |
| Alternative Income Considered | Yes, rental income, pensions, or savings can help | Yes, rental income, business profits, or assets can be used |
| Credit History Importance | Important for affordability checks | Important but less critical than the exit strategy |
| Exit Strategy Required? | Yes, to show how the loan will be repaid | Yes, usually the primary focus for approval |
| Who Typically Uses It? | Homeowners needing short-term finance | Property investors, developers, business owners |
| FCA Regulation | Yes, FCA-regulated for consumer protection | No FCA regulation, as it’s for commercial use |
See also the difference between regulated and unregulated bridging loans.
What Factors Will Bridging Lenders Look At If I Do Not Have a Salary?
Exit Strategy – The exit strategy may be the most important thing that a bridging lender considers if you do not have a regular income. Whether it is a sale of the property or securing long-term finance, being able to demonstrate this clearly through business plans, cost-analysis and forecasts will be necessary when you apply.
Rental Income – Showing proof of current rental income that you are earning from other properties may be used in lieu of a regular income.
Equity in Property – The more equity you have or assets that you own, the less risk there is for the lender and the more confidence they have that they may be able to recover any loss of funds.
Other Sources of Income – You can use other income sources such as investments, pensions or business earnings or even proof of future earnings from a client to support your application.
Credit Score – Some lenders may run a credit check to get an indication of your credit history. Whilst not all lenders do this, they may be looking out especially for things like IVAs, CCJs and bankruptcy.
Can I Get a Bridging Loan Without an Income?
Yes, you can get a bridging loan without a regular income. Unlike traditional mortgages, which based their decision on your salary and affordability, bridging loans are primarily based on your exit strategy and how you plan to repay the loan.
If you do not have a salary, showing other assets, strong credit history, or a clear exit strategy can improve your chances of approval.
Can I Get a Bridging Loan if I am Unemployed?
Yes, you can still get a bridging loan if you are unemployed, but you will need to demonstrate how you will repay the loan.
Since bridging loans are secured against property, lenders are more concerned about the value of your assets and your ability to repay rather than your employment status.
Lenders are used to working with people that are solo-entrepreneurs, developers or self-employed and if you can show that you have a strong exit strategy to buy and sell a property, carry out refurbishments or rent it out to tenants, you can put your case forward effectively.
