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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.

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