Working Hours: Mon - Fri: 9:00AM - 6:00PM
Call Us: 0330 304 3040
Home Mortgage Calculators About Blog
   Back | How it Works
How it Works
Securing an excellent mortgage offer with Revolution Finance Brokers couldn't be easier
1Get in Touch
Complete a quick form to give us an overview of your mortgage or financing requirements, and we'll provide recommendations about the best opportunities for you.
2Submit Your Application
Once you've chosen your preferred mortgage deal, we'll steer you through the paperwork with comprehensive application management from start to finish.
3Mortgage Completion
Revolution Finance Brokers will finalise the details and enable you to move forward without delay!
   Back | About
About
Blog
Contact Us
FAQs
Documents
Areas
Credit Report
   Back | Insurance
Insurance
Business Protection Insurance
Life Insurance
Building Insurance
Home Insurance
Mortgage Repayment Protection
Family Income Benefit
Critical Illness Cover
Income Protection
Life Assurance
   Back | Calculators
Calculators
Stamp Duty
Commercial Stamp Duty
How Much Can I Borrow?
Buy To Let
Bridging Loan
Residential & Commercial Bridging
Mortgage Repayment
Development Finance
Commercial Mortgage
   Back | Choose your mortgage type
Choose your mortgage type
Bad Credit Mortgages
Bridging Finance
Commercial Mortgages
Buy to let
Self Employed Mortgages
Mortgages for Professionals
Lifetime Mortgages
Expat Mortgages
Interest Only Mortgages
Mortgage Affordability
Mortgage Application
Income Types
Residential Mortgages
Development Finance
Property Types
Remortgages
First Time Buyers
Mortgage Rejection
Offset Mortgages
Second Charge Mortgages

Are Bridging Loans Regulated by the FCA?

FCA regulation is a valued consumer protection applicable to residential financing products. This guide explains how regulations apply to bridge loans – and why it matters.

What does the FCA regulate?

There are two different categories of bridging loan - regulated and unregulated.

While the phrase 'unregulated' might sound a little circumspect, this is actually a catchall term used for any bespoke lending, agreed on a case-by-case basis, for financing projects that do not relate to a residential home.

If you take out a bridging loan against your home, you will need a regulated product. Regulated means that the lender must comply with the Financial Conduct Authority rules, which are around preventing mis-selling, and the provision of independent advice.

Are Unregulated Bridging Loans Safe?

Indeed, this is a bridging loan used for commercial businesses or borrowers using a bridge loan to buy an investment property.

Since each investment is unique, the nature of the lending is tailored to each applicant's circumstances.

  • Property Details
  • Type of loan
  • help Maximum 75% LTV
  • help Maximum 70% LTV
  • help Maximum 70% LTV
  • help Maximum 65% LTV
  • help We will lend against current market value of the asset with vacant possession

  • £7,500,000
    help You cannot exceed the maximum loan available based on the maximum LTV for the corresponding type of property selected above
  • 75%
    help You cannot exceed the maximum LTV available for the corresponding type of property selected above


  • 0
  • help Term should be entered in whole months, to a maximum of 12

  • help Deducted interest is where the forecast interest amount is deducted from the loan on day one.
  • help Serviced interest is where the interest is paid on a monthly basis. If serviced interest is chosen, evidence will be required to show your ability to pay interest when it is due.
  • help This is the standard rate for the property type chosen
  • help You can enter a custom rate below our standard rate for the calculation, but the availability of this rate is not guaranteed
Instant Results
Total security value 0
Gross loan amount 0
Gross LTV 0
Interest rate 0
Term (months) 0
Minimum term (months) 0
Assumed arrangement fee @ 2% (min £2,000) 0
Interest Retained 0
Monthly Serviced Interest 0
Admin fee 0
Indicative day 1 Net loan advance 0

Are There Different Types of Regulated Bridge Finance?

There are since lenders will need to look at your exit strategy's strength as their primary decision-making factor.

Some niche regulated bridging loan categories are as below:

What are the Eligibility Criteria for Regulated Bridging Loans?

The criteria are much the same for any bridging loan, and the exit strategy is the most critical factor, with lenders considering:

  • How likely you are to achieve the anticipated resale value for the property.
  • Whether you have the expertise to carry out renovation or development work.
  • If there is an agreement in principle for a remortgage exit strategy.

Other criteria include:

  • Your experience in property investments or developments.
  • What sort of property you wish to buy - unusual projects are higher risk.
  • Credit history, and whether you have had any repossessions or severe credit issues in the past.
  • How much deposit you have available. The minimum is usually 30% to 35%, but the more you can put down, the lower the rates you will achieve.
  • The security on offer is also important - and how easy it would be to sell that asset in a repossession scenario.

Is There a Maximum I Can Borrow on a Regulated Bridging Loan?

There isn't a fixed maximum, but lenders will usually have a minimum. This value could be as low as £10,000 or might be up to £50,000.

Are Residential Bridge Loans Available as Second Charges?

If you have an existing mortgage and wish to take out a bridging loan secured against the same property, you will need specialist broker advice to negotiate this.

You can secure a bridge loan as a second charge, but this isn't common, and you will need a larger deposit.

Which Sort of Bridging Loan is Suited to a Buy to Let Investment?

Should you be using short-term bridging finance to buy a rental property, you will need commercial unregulated bridging finance.

Many investors use a bridge loan, to be replaced by a buy to let mortgage from the same lender, known as a bridge to let deal.

Expert Advice with Regulated Bridging Loans

If you're looking for fast, short-term finance on a residential property, it is vital to seek advice from an independent, FCA registered broker.

Contact the business finance broker team on 0330 304 3040, or email us at [email protected] to explore the best rates currently available on the market.

Further Reading

PROCESS

Explore Our Presence

Securing an excellent mortgage offer with Revolution Finance
Brokers couldn't be easier:

cityam
dailyexpress
dailymail
standard
FT Advisor
LBC
The Guardian
Independent
Metro
Mortgage Introducer
Sky News
The Sunday Times
Yahoo
This is Money
Mirror
LBC
The Sunday Times
PROCESS

Revolution Mortgage Brokers:
100% Independent & Whole-of-Market

As specialist mortgage brokers for a huge variety of applicants, the whole-of-market consultants at Revolution provide access to an exceptional range of lenders, products and mortgage deals. That means you get the advantage of professional negotiation and broker-exclusives through an established lending network to ensure we always find you the most competitive mortgage available.

REFERRALS

Refer, Relax, and get £50

Ask the Expert
Mortgage Brokers

Revolution Brokers
What can we help you with today?
Do you have a particular timescale in mind?
Next
Which situation from the below list best matches your requirements? *
Could you tell us the market value of the property?*
Please let us know a rough idea of your yearly income (before tax) for all applicants? *
Back
Next
Primary applicant name *
Contact email address *
Best contact number *
Back
Next