What is Unregulated Bridging Finance?
Unregulated bridging loans are not governed by the FCA, as they are used for commercial and investment purposes rather than personal residences. These loans offer flexibility and are ideal for property developers, landlords, and businesses needing short-term funding.
Who Can Benefit?
Key Benefits:
Fast and Flexible – Less regulatory restrictions mean quicker approval times.
Ideal for Investment Properties – Perfect for flipping properties or rental investments.
Higher Borrowing Potential – Often allows larger loan amounts compared to regulated loans.
Considerations:
🔸 No FCA protection – Borrowers must fully understand the terms and risks.
🔸 Requires a clear exit strategy, such as refinancing or selling the property.
🔸 Interest rates may be higher due to increased lender risk.
What is Regulated Bridging Finance?
Regulated bridging loans are short-term financial solutions secured against a property that is or will be used as your primary residence. These loans are governed by the Financial Conduct Authority (FCA) to ensure borrower protection and fair lending practices.
Who Can Benefit?
Key Benefits:
FCA-Regulated Protection – Ensures fair lending, transparency, and borrower security.
Quick Access to Funds – Ideal for urgent property transactions.
Flexible Exit Strategies – Typically repaid through property sale or refinancing.
Considerations:
🔸 Clear repayment plan required – such as selling the property or securing a long-term mortgage.
🔸 Loan terms typically range from 3 to 12 months.
