Regulated Bridging Loans
Short-term finance secured against your home — chain breaks, buy-before-sell, and residential refinance. A regulated bridging loan is secured against a property you or a close family member will live in, placing it under FCA consumer protection. Rates from 0.55% per month, up to 75% LTV. Every regulated case is handled by a qualified, independent FCA-authorised adviser — at no cost to you.
What is a Regulated Bridging Loan?
A regulated bridging loan is short-term property finance secured against a property that the borrower or a close family member occupies — or intends to occupy — as their main residence. Because the security is a family home, the loan falls under the FCA's mortgage regulation framework, which provides a specific set of consumer protections: formal affordability assessment, prescribed cost disclosures, a reflection period before drawdown, and access to the Financial Ombudsman Service if something goes wrong.
Regulated bridging is typically used for chain breaks, buying a new home before the existing one has sold, urgent residential refinancing, and renovation bridging on a primary residence. It is a product for homeowners — not property investors or developers — and carries a different regulatory treatment, timeline, and lender pool from unregulated bridging.
How Regulated Bridging Loans Work
A regulated bridge works exactly like an unregulated bridge in terms of the basic mechanics — short-term finance, secured against property, repaid on a defined exit event. The differences lie in the regulatory framework, the lender pool, the required advice process, and the consumer protections that apply throughout.
Why You Might Need One
- Your buyer has pulled out but you've found your next home — you need to complete on the purchase without waiting for a new buyer
- Your mortgage offer has expired or been withdrawn and your onward purchase deadline is immovable
- You need to move quickly — a standard mortgage cannot complete in the available timeframe
- You're downsizing and want to buy before selling to avoid losing the property you want
- You need to refinance an existing short-term debt secured on your home before it expires
What the FCA Framework Provides
- Formal affordability assessment — the lender must check you can service or repay the bridge
- Prescribed cost disclosure — full cost illustration before you commit to anything
- Reflection period — time to consider the offer before drawdown
- Access to Financial Ombudsman Service if a dispute arises
- Independent qualified adviser who must act in your best interests
Is My Bridging Loan Regulated? A Simple Decision Test
The regulatory classification is determined by objective facts — it is not a choice. The questions below cover the most common scenarios. If you are unsure after reviewing these, tell us your scenario and we will confirm the regulatory position before any costs are committed.
Quick Regulatory Classification Test
A bridge secured on a buy-to-let property is usually unregulated — but if you or a family member are living there, or have recently lived there and plan to return, the position becomes more complex. Always disclose the full occupancy picture at assessment stage. Misclassification is a compliance issue — not just a product mismatch — and is something the independent regulated adviser is specifically there to confirm.
The Independent FCA Adviser: What It Means for You
Because Aura Capital is not FCA-authorised, we cannot provide regulated mortgage advice. On regulated cases, we arrange a qualified, independent FCA-authorised adviser on your behalf. This is not a formality — it is a genuine consumer protection, and it costs you nothing.
How the Independent Adviser Model Works
The adviser we arrange is FCA-authorised, qualified to provide regulated mortgage advice, and operates entirely independently of both Aura Capital and the lender. Their obligation is to you — not to us, and not to the lender. They must assess your circumstances, confirm the loan is appropriate for your situation, provide a full written cost illustration before you commit, and ensure the FCA's consumer protection requirements are met throughout.
Their cost is covered from fees paid to Aura Capital directly by the lender. You do not pay a separate advice fee. There is no hidden charge folded into the loan. The independent adviser is included as part of how we structure regulated cases — because the right advice from an independent qualified party is not optional when your home is at stake, and it should not cost you extra to receive it.
No Conflict of Interest
The adviser is independent of both Aura Capital and the lender. Their legal obligation is to act in your best interests — not ours, not the lender's.
FCA-Authorised & Regulated
The adviser holds the FCA authorisation and qualifications required to provide regulated mortgage and bridging advice. You receive proper regulated advice — not a referral to someone who "will sort it".
Covered by Lender Fees
The adviser's cost is covered from fees paid to Aura Capital by the lender — not charged to you separately. You receive independent advice at no additional cost to the standard loan arrangement.
A regulated bridging loan is secured against your home. If the exit strategy fails — if your property doesn't sell, if the refinance falls through, if circumstances change — the consequences are serious. The independent adviser's role is specifically to assess whether this product is right for your situation before you commit to it. They review the exit strategy, the affordability, the cost, and the suitability for your specific circumstances. They are legally required to tell you if they believe the product is not right for you — regardless of whether that affects our fee. This is consumer protection operating exactly as it should.
When Regulated Bridging Is Used
Regulated bridging is a homeowner's tool — used when a residential transaction needs to complete quickly and a standard mortgage cannot bridge the timing gap. Around one in three UK property transactions involves a chain, and chain collapse is the single most common use of regulated bridging.
Chain Break Bridge
Your buyer has pulled out, or a link further down the chain has collapsed, threatening your onward purchase. A regulated bridge lets you complete on your new home regardless of what's happening with your existing property's sale. You repay the bridge once the existing home sells.
Buy Before Your Current Home Sells
Secure your new home before your current one has completed. Avoids losing the property you want while waiting for your sale to go through. Bridge secured on the existing home, repaid on sale. Removes the need to be in a chain at all.
Mortgage Expired or Declined
Your mortgage offer has been withdrawn, expired, or declined at a late stage — and your exchange deadline is immovable. A regulated bridge funds completion while a replacement mortgage is arranged. The bridge is short — typically 3–6 months — and repaid when the new mortgage completes.
Downsizing — Buy First, Sell After
Move into a smaller property without waiting for your current home to sell first. Particularly common among older homeowners who want the certainty of the new property before listing the existing one. Bridge repaid from the sale of the larger property.
Renovation Bridging on Main Residence
Fund structural or significant renovation works on your primary home before refinancing onto a standard residential mortgage at the improved value. The bridge funds the works period. Repaid on completion of the works and refinance onto a term mortgage.
Refinancing Residential Pressure Debt
An existing short-term facility secured on your home is due to expire before the longer-term refinance is ready. A regulated bridge buys the time needed — repaid when the replacement mortgage or sale completes. Avoids default on the expiring facility.
Around 30% of agreed property sales in the UK fail to complete, with chain collapse one of the leading causes. The average chain involves 4–5 properties — meaning any single link breaking can collapse months of work across multiple transactions. A regulated bridge removes your purchase from chain dependency entirely, protecting both your onward move and the equity tied up in your existing home's sale. The cost of a 3–6 month bridge is often significantly less than the cost — financial and personal — of losing the purchase entirely and starting again.
Regulated Bridging Loan Rates UK 2026
Regulated bridging rates start from 0.55% per month for qualifying cases — standard residential property at conservative LTV with a clean, evidenced exit. Most chain break and buy-before-sell cases price between 0.65% and 0.85% per month depending on LTV, property type, credit history, and exit strength.
| Scenario | Indicative Rate | LTV | Notes |
|---|---|---|---|
| Chain break — clean case, exchanged sale | From 0.55% pm | Up to 65% | Strongest pricing. Sale exchanged on existing property, clear exit date. |
| Chain break — sale agreed, not yet exchanged | 0.65%–0.75% pm | Up to 70% | Most common chain break scenario. Where most transactable cases price. |
| Buy-before-sell — standard residential | 0.70%–0.80% pm | Up to 75% | Property marketed but not yet sold. Exit reliant on open sale process. |
| Mortgage expired/declined — urgent bridge | 0.75%–0.90% pm | Up to 70% | Time-sensitive. Exit via replacement mortgage once arranged. |
| Renovation bridge — primary residence | 0.75%–0.95% pm | Up to 70% | Works scope and exit onto term mortgage assessed together. |
| Adverse credit — regulated case | 0.85%–1.10% pm | Up to 65% | FCA affordability assessment applies. Exit strength carries significant weight. |
Total Cost of a Regulated Bridge — What to Model
| Cost Component | Typical Range | Notes |
|---|---|---|
| Monthly interest | From 0.55% pm | Applied to gross loan. Retained or rolled structures — no monthly payments. |
| Arrangement fee | 1%–2% | Of gross loan. Deducted from advance on completion. Confirm on gross or net. |
| RICS valuation | £300–£800 | Standard residential regulated cases. Faster on AVM/desktop for qualifying properties. |
| Legal fees — borrower | £1,000–£2,500 | Standard regulated legal work. Complexity and title position affect cost. |
| Legal fees — lender | £500–£1,500 | Payable by borrower on most regulated products. |
| Independent adviser fee | £0 — included | Covered from lender-paid fees to Aura Capital. No separate charge to borrower. |
| Exit fee | 0%–1% | Product dependent. No exit fee products available on qualifying regulated cases. |
The independent FCA adviser is legally required to provide a full written cost illustration — the Key Facts Illustration (KFI) or European Standardised Information Sheet (ESIS) — before you commit to a regulated bridging loan. This sets out all costs, the total amount repayable, the rate, fees, and the consequences of not repaying on time. You will not be asked to proceed without this document. No verbal quotes, no costs hidden until completion.
Your FCA Consumer Protections on a Regulated Bridge
The FCA regulatory framework provides a specific set of protections that do not exist on unregulated bridging products. These protections are the reason regulated bridges take slightly longer to arrange — and why they are the right product when your home is at stake.
Affordability Assessment
The regulated lender must carry out a formal affordability assessment — checking that you can service or repay the bridge. This is not a barrier to approval; it is a safeguard ensuring the product is workable for your circumstances before it is offered.
Prescribed Cost Disclosure
Before you commit, you receive a formal written cost illustration setting out all costs — rate, fees, total repayable, and consequences of non-payment. No surprises at completion. The adviser is legally required to ensure you understand this document before proceeding.
Reflection Period
You have a defined reflection period between receiving the offer and drawdown — time to reconsider, seek further advice, or withdraw without penalty. Unregulated bridging does not provide this protection.
Financial Ombudsman Access
If a dispute arises with the regulated lender or adviser, you have the right to refer it to the Financial Ombudsman Service — a free, independent dispute resolution service. This protection exists only on regulated products.
Suitability Assessment
The independent adviser must assess whether a regulated bridge is suitable for your specific circumstances — including your financial position, the exit strategy's realism, and whether this product is the right solution for your situation. They must act in your best interests.
FSCS Coverage
Where the regulated lender or adviser is covered by the Financial Services Compensation Scheme, you may have FSCS protection in the unlikely event of their failure. This is an additional layer of protection that does not exist outside the regulated framework.
Regulated vs Unregulated Bridging — Key Differences
| Feature | Regulated Bridging | Unregulated Bridging |
|---|---|---|
| Security property | Borrower's or family member's primary residence | Investment, commercial, BTL, HMO, development |
| FCA oversight | Yes — full FCA MCOB framework | No — outside FCA consumer credit rules |
| Formal advice required | Yes — independent FCA-authorised adviser | Not required — borrower treated as commercial party |
| Affordability assessment | Mandatory | Asset-led — not income-based primarily |
| Written cost illustration | Mandatory before commitment | Provided as best practice but not legally required |
| Reflection period | Yes — prescribed period before drawdown | Not required |
| Financial Ombudsman access | Yes | No — not a regulated activity |
| Completion timeline | Typically 3–6 weeks (advice process adds time) | Can be 5–21 days on clean cases |
| Max LTV | Up to 75% | Up to 85% on qualifying residential investment |
| Typical rates | From 0.55% pm | From 0.55% pm — similar range |
For properties that are not your primary residence — investment assets, buy-to-let, HMO, commercial — see our unregulated bridging loans page.
How a Regulated Bridge Is Arranged — Step by Step
The regulated process is built for speed — but it must move through the right authorised route. The independent adviser, valuation, and legal work all run in parallel to compress the overall timeline. Most straightforward regulated cases complete within 3–4 weeks from first instruction.
Initial Assessment — Same Day
We review your scenario: the property, whether it's your home, the loan amount needed, the timeline, and the exit strategy. We confirm whether the case is regulated and what the fastest route to completion looks like. Same-day assessment on most cases where information is complete.
Independent Adviser Arranged — No Cost to You
We arrange a qualified, independent FCA-authorised adviser for your case. They contact you directly, review your full circumstances, and carry out the regulated suitability assessment. Their cost is covered from lender-paid fees — you are not charged separately. This typically happens within 24–48 hours of your initial assessment.
Formal Cost Illustration & Lender Selection
The adviser provides a full written cost illustration — rate, all fees, total cost over term, total repayable — before you commit to anything. The regulated lender is selected based on your specific circumstances, rate, and timeline requirements. You will not be presented with a verbal quote and asked to proceed.
Valuation & Legal Work — Run in Parallel
RICS valuation instructed immediately. Solicitor instructed at the same time. AVM or desktop valuation available on qualifying standard residential properties — same day or 24–48 hours, reducing cost and timeline. Full RICS inspection for more complex or higher-value cases — typically 5–7 working days.
Regulated Offer, Reflection Period & Completion
Regulated lender issues formal offer with prescribed FCA documentation. Reflection period observed before drawdown. Completion once legal work is complete and all regulatory requirements are satisfied. Total timeline from instruction: typically 3–4 weeks on straightforward cases, 4–6 weeks on more complex ones.
- Property address and whether you currently live there or will move there
- Current estimated value and any existing mortgage balance
- Loan amount required and purpose
- Timeline — when do you need to complete?
- Exit strategy — sale of the property, or refinance onto a term mortgage?
- If chain break: status of your existing sale — agreed only, or exchanged?
- Any adverse credit — disclosed early prevents wasted time
Regulated Bridging Case Studies
Case Study 1 — Chain Break Bridge, Buyer Pulled Out 3 Days Before Completion, Surrey
Purchase Saved — Completed 18 DaysSituation: A homeowner had exchanged contracts on their new home and had a buyer in place on their existing property. Three days before completion, their buyer's mortgage offer was withdrawn. The sale collapsed. The completion on the new property was contractually fixed — pulling out would have meant forfeiting the 10% exchange deposit (£38,500) and potentially facing a damages claim.
Process: Regulated case — secured against existing primary residence. Independent adviser arranged within 24 hours. Formal cost illustration provided day 2. Desktop valuation on existing property — day 3. Legal completion in 18 days from initial assessment.
Outcome: New home purchase completed on the contracted date. Exchange deposit protected. Existing home remarketed — sold 6 weeks later. Bridge redeemed at month 2. Total bridge cost for the 2 months: approximately £5,540 interest plus fees — against a £38,500 deposit forfeiture avoided.
Case Study 2 — Buy-Before-Sell, Downsizing, Property Not Yet Listed, Kent
Bridge Term: 4 Months — Sold at Month 3Situation: A couple in their 60s had found a smaller property they wanted to buy immediately but had not yet listed their existing home. They didn't want to list until they had certainty on the onward purchase — a common and entirely rational position that a standard mortgage cannot accommodate.
Process: Regulated case — new property to be primary residence. Low LTV at 51% on the existing unencumbered property — strongest pricing band. Independent adviser arranged, full cost illustration provided, bridge completed in 21 days from first contact.
Outcome: New property purchased. Existing home listed and sold at month 3. Bridge redeemed in full. No chain, no dependency on timing alignment between purchase and sale. Total bridge cost for 3 months: approximately £8,775 interest plus fees — the price of certainty and a stress-free move.
Case Study 3 — Mortgage Offer Expired, Exchange Immovable, London
Exchange Preserved — Completion 14 DaysSituation: First-time buyer had exchanged on a London flat and their mortgage offer expired — the original product had been withdrawn following a rate change. A replacement mortgage was in progress but would not complete within the exchange period. Pulling out meant forfeiting a 10% exchange deposit of £54,000.
Process: Regulated case — buying as primary residence. Slightly higher LTV at 80% — rate reflects the leverage. Independent adviser arranged. Full cost illustration and suitability assessment completed. Completed in 14 working days.
Outcome: Exchange completed. Deposit protected. Replacement mortgage completed at month 3 — bridge redeemed. Total bridge cost for 3 months: approximately £11,556 — against a £54,000 deposit forfeiture avoided and months of wasted transaction costs.
Regulated Bridging Loan FAQs
A regulated bridging loan is short-term property finance secured against a property the borrower or a close family member occupies or will occupy as their main residence. Because the security is a family home, the loan falls under the FCA's mortgage regulation framework — providing formal affordability assessment, prescribed cost disclosures, a reflection period, and access to the Financial Ombudsman Service. It is typically used for chain breaks, buying before selling, urgent purchase bridging, and residential refinancing.
The classification is determined by whether the security property is or will be your primary residence or that of a close family member. If yes — regulated. If the property is a buy-to-let, investment, commercial, or development asset — almost certainly unregulated. It is not a choice you make — it is determined by the facts of the transaction. We confirm the regulatory classification at initial assessment stage, before any costs are committed.
Aura Capital is not FCA-authorised and cannot provide regulated mortgage advice directly. On regulated cases, we arrange a qualified, independent FCA-authorised adviser on your behalf — at no cost to you. The adviser is independent of both Aura Capital and the lender, and their cost is covered from fees paid to us by the lender. You receive proper regulated advice and FCA consumer protection from the outset. This is not a workaround — it is how regulated cases should be structured to ensure the borrower receives genuinely independent advice.
When a regulated bridging case completes through our network, the lender pays a fee to Aura Capital for arranging the introduction. We use a portion of that fee to cover the cost of the independent FCA-authorised adviser. The adviser costs you nothing separately. Their independence is what matters — they are legally obligated to act in your best interests, not ours and not the lender's. When your home is the security, you should not have to pay extra to receive genuinely independent advice about whether this product is right for you.
Regulated bridging rates start from 0.55% per month for the strongest cases — clean standard residential at sub-65% LTV with an exchanged sale exit. Most chain break and buy-before-sell cases price between 0.65% and 0.85% per month. Rates depend on LTV, property type, credit history, the strength of the exit strategy, and lender. The independent adviser will provide a full written cost illustration covering rate, all fees, and total repayable before you commit to anything.
Most straightforward regulated cases complete within 3–4 weeks from first instruction. The advice process, FCA-required documentation, and reflection period add time compared to unregulated bridging — but do not prevent fast completion. AVM and desktop valuation routes on qualifying standard residential properties compress the timeline. More complex cases — higher LTV, adverse credit, unusual property — typically take 4–6 weeks. We provide a realistic timeline estimate at initial assessment stage.
Up to 75% LTV on qualifying cases — slightly lower than the up to 80–85% available on unregulated residential investment bridging. The regulated framework's affordability and affordability requirements mean lenders are more conservative on leverage where the security is someone's home. Where the borrower has a strong exit (exchanged sale), clean credit, and conservative leverage, 75% LTV is achievable. The independent adviser will confirm the realistic leverage range for your specific case.
This is the primary risk on a regulated bridge where the exit is sale of the existing property — and it is exactly the scenario the independent adviser assesses during the suitability process. If the property hasn't sold by the end of the bridge term, contact the lender immediately — do not wait until the term expires. Most regulated lenders will work with you on a term extension (subject to a fee), a revised sale strategy, or a refinance onto another short-term facility. The bridge term should always include a realistic buffer beyond your expected sale timeline to reduce the likelihood of this situation arising.
Yes — adverse credit does not automatically prevent a regulated bridge. Regulated lenders still carry out affordability and suitability assessments, but the exit strategy and equity position carry significant weight. Satisfied CCJs, defaults, and previous mortgage arrears are considered on regulated cases where the LTV is conservative and the exit is strong. The independent adviser's role includes assessing whether the product is suitable given your full financial picture — including the credit position.
Discuss Your Regulated Bridging Case
Send us the property address, whether you live there or will move there, the loan amount required, and your exit strategy. We confirm the regulatory classification the same day, arrange your independent FCA adviser within 24–48 hours, and ensure you receive a full written cost illustration before you commit to anything.
Risk warning: a regulated bridging loan is secured against your home. Your home may be repossessed if you do not keep up repayments or repay the loan at term. You should not enter into a regulated bridging loan without receiving a full written cost illustration and independent regulated advice confirming the product is suitable for your circumstances. Aura Capital is not FCA-authorised. On regulated cases we arrange an independent FCA-authorised adviser at no cost to you. All regulated advice, suitability assessments and FCA-regulated activities are carried out by the authorised adviser.