Regulated Bridging Loans UK
Regulated bridging loans are short-term property loans secured against a residential property where the borrower or their immediate family will live in the property. Because the security is a home, these loans fall under Financial Conduct Authority regulation and are subject to additional consumer protection requirements.
This page explains how regulated bridging loans work, when they are used, what typical terms look like, and how regulated cases are usually structured through authorised lenders and regulated intermediaries.
Regulated Bridging Loan Calculator
Use this to model indicative regulated bridging costs based on a typical starting rate of 0.55% per month. Figures are illustrative only and do not constitute regulated advice or an offer of finance.
Use the value the regulated lender is likely to lend against.
Regulated bridging leverage is case dependent and usually lower than borrowers initially hope.
Typical regulated bridging terms are short and should match a real exit plan.
This calculator defaults to 0.55% per month as requested.
The right structure depends on affordability, net advance required and exit timing.
Indicative only. Actual lender fees vary.
Indicative completion deduction.
Legal costs vary by property, title and borrower structure.
Regulated bridging is exit-led and the repayment route is critical.
Indicative breakdown
This calculator is for general information only. It is not regulated advice, not a recommendation, and not an offer of a regulated bridging loan.
What is a regulated bridging loan?
A regulated bridging loan is a short-term secured loan where the security property is, or will be, occupied by the borrower or their immediate family as a main residence. Because the loan is secured against a home, the transaction is treated as regulated and must be handled through the correct regulated lending framework.
The defining point is not simply the loan purpose, but whether the borrower lives in or intends to live in the secured property.
These loans carry additional regulatory requirements compared with business-purpose or investment bridging loans.
They are commonly used for chain breaks, fast purchases, refinance pressure and time-sensitive residential transactions.
When regulated bridging loans are used
These are the common scenarios where regulated bridging becomes relevant.
Complete on a new home before your existing home sale has finished.
Secure a residential purchase while arranging long-term mortgage finance behind it.
Repay an existing short-term debt position where timing is tight and the property is your home.
Bridge before refinancing after works, where the property remains a main residence.
Not every residential-looking bridge is regulated. If the property is an investment asset rather than the borrower’s home, the loan may instead sit within the unregulated bridging market.
Typical regulated bridging loan terms
Regulated bridging terms depend on the property, the borrower profile, the exit strategy and the authorised lender’s criteria. Below is a broad guide only.
| Term | Typical range | Notes |
|---|---|---|
| Rates | From 0.55% pm | Case dependent and subject to regulated lender criteria. |
| LTV | Up to c.70-75% | Stronger exits and lower-risk cases generally support better leverage. |
| Term length | 1-24 months | Short-term by nature and always exit-led. |
| Interest type | Retained, rolled or serviced | Depends on net advance needs and affordability structure. |
| Main exits | Sale or refinance | The exit plan must usually be realistic and evidenced. |
Regulated bridging should never be judged on headline rate alone. The real question is whether the structure is appropriate, compliant and genuinely workable for the borrower’s circumstances.
Regulated vs unregulated bridging loans
This is one of the most important distinctions in bridging finance and one of the most misunderstood.
- Secured against a home the borrower or immediate family lives in or intends to live in
- Subject to FCA residential regulatory framework
- Requires handling through appropriately authorised parties
- Usually used for personal residential purposes
- Usually business-purpose or investment-focused
- Secured against buy-to-let, commercial or non-owner-occupied property
- Examples include HMO Bridging Loans and Commercial No Valuation Bridging Loans
- Also includes many specialist products like Second Charge Bridging Loans or Equitable Charge Bridging Loans depending on use and security
A borrower cannot simply choose whether a bridge is regulated or unregulated. The structure is determined by the security property and how it is used. Getting that distinction wrong creates a compliance problem, not just a product mismatch.
What regulated lenders usually want to see
Even where timing is urgent, regulated bridging still needs a proper suitability and underwriting process through the correct authorised channel.
The property must clearly be a main residence or intended main residence.
Most commonly sale of the current home or refinance to longer-term mortgage debt.
The advice, suitability, disclosures and regulated requirements must sit with the authorised regulated party.
- Property address and value / purchase price
- Occupancy intention and residential status
- Loan amount, term and exit plan
- Existing mortgage or debt position
- Solicitor details and timing requirements
How a regulated bridging case usually works
The process is still built for speed, but regulated cases must move through the right authorised route.
FAQs
The regulated bridging questions that matter most.
What makes a bridging loan regulated?
A bridging loan is usually regulated when it is secured against a property that the borrower or their immediate family will occupy as a main residence.
Are all residential bridging loans regulated?
No. The critical issue is occupation and use. Some residential-looking assets are still investment properties and may fall into the unregulated market.
Do regulated bridging loans fall under FCA rules?
Yes. Regulated bridging sits within the relevant FCA residential regulatory framework and must be handled through authorised regulated parties.
Can Aura Capital offer regulated bridging loans directly?
No. Aura Capital is not FCA authorised and does not undertake regulated mortgage business. Where relevant, a case may be referred on a non-advised basis to an authorised lender or regulated intermediary.
Who provides the advice on a regulated bridging case?
Any regulated advice, suitability assessment and FCA-regulated requirements must be undertaken by the authorised third party handling the regulated transaction.
What are regulated bridging loans commonly used for?
Typical uses include chain breaks, fast residential purchases, urgent residential refinancing and temporary bridging before a longer-term mortgage exit.
What rates do regulated bridging loans start from?
This page models indicative pricing from 0.55% per month, but actual pricing depends on the regulated lender, property, exit and borrower circumstances.
How fast can a regulated bridging loan complete?
Timing varies by lender, valuation, legal complexity and the compliance process. Regulated loans can still move quickly, but they must go through the correct authorised channel.
What is the usual exit strategy?
Most commonly sale of the existing home or refinance onto a longer-term residential mortgage product.
Can a regulated bridging loan be second charge?
Potentially yes depending on the structure, but it must still be handled within the proper regulated framework where the security is a main residence.
Is this page offering regulated finance?
No. This page is informational only. It is intended to explain how regulated bridging works and when referral to an authorised regulated party may be required.
Why is the distinction between regulated and unregulated so important?
Because the regulatory treatment is determined by the property use and borrower occupancy. Misclassifying a case is a compliance issue, not just a product error.
