Regulated bridging loans for chain breaks and buying before you sell
Buyer pulled out days before completion? Found your next home before selling this one? Mortgage offer expired with the completion date fixed? A regulated bridging loan pays for the move now and is repaid when you sell or remortgage. It's secured on your home, or a close family member's, so it comes with full FCA protection and independent advice.
Rates from 0.55% a month, up to 75% LTV. An independent FCA-authorised adviser handles every regulated case, at no cost to you.
On this page
Aura Capital is not authorised or regulated by the Financial Conduct Authority and does not give regulated mortgage advice. This page is for information only. If your case is regulated, we arrange a qualified, independent FCA-authorised adviser for you, at no cost to you. The adviser is independent of both Aura Capital and the lender, and is paid from the fee the lender pays us.
The short version
- A bridging loan is regulated when the property it's secured on is, or will be, the home of you or a close family member.
- It's mostly used for chain breaks, buying before you sell, a mortgage offer that's expired, and renovating your own home.
- Rates start from 0.55% a month. Most chain break and buy-before-sell cases price between 0.65% and 0.85%.
- You can borrow up to 75% LTV over 1 to 24 months, with interest usually retained or rolled up so there are no monthly payments.
- You get FCA protections: an affordability check, a written cost illustration, a reflection period and access to the Financial Ombudsman Service.
- An independent FCA-authorised adviser is included on every regulated case, and you don't pay for it.
What is a regulated bridging loan?
A regulated bridging loan is a short-term, interest-only loan secured on a property that you or a close family member live in, or will live in. Because the security is a home, the loan falls under FCA mortgage rules. It's repaid in one go, usually from the sale of a property or a new mortgage, within 1 to 24 months.
Most people who need one are in the middle of a move that's gone wrong. Your buyer has pulled out a week before completion. You've found the right house but haven't sold yours yet. Your mortgage offer has expired and the completion date can't move.
A normal mortgage can't fix any of those in time. A regulated bridge can. It pays for the purchase now and gets repaid when your old home sells or your new mortgage completes.
Because your home is on the line, the rules are stricter than for investment lending. The lender has to check you can afford it, show you every cost in writing and give you time to think before you sign. You also get independent advice before you commit. That's what the regulation is for.
Is my bridging loan regulated?
It depends on who lives in the property, not on what you'd prefer. If you or a close family member live there now, or will move in, it's almost always regulated. If it's an investment you'll never live in, it's unregulated. Here's how the common situations work out.
| Your situation | Usually |
|---|---|
| The property is your main home, or you'll move into it as your main home | Regulated |
| A close family member (spouse, civil partner, parent or child) lives there or will live there | Regulated |
| You're taking a second charge on your home for business purposes, and you live there | Regulated |
| It's a buy-to-let you'll rent out and never live in | Unregulated |
| It's commercial, an HMO, semi-commercial or a development site | Unregulated |
| You're borrowing through a limited company and no director or family member lives there | Unregulated |
| Mixed or unclear use, part personal and part investment | Check with us |
A buy-to-let can still be regulated if you or a relative have lived there recently and plan to go back. Tell us the full occupancy picture at the start. Getting the classification wrong is a compliance problem, and confirming it is part of the independent adviser's job.
Regulated vs unregulated bridging: the key differences
The short answer: regulated bridging is for homes and comes with FCA consumer protection. Unregulated bridging is for investment and business property and doesn't. The loans work the same way, but the checks, the timescales and the protections are different.
| Regulated bridging | Unregulated bridging | |
|---|---|---|
| Who lives in the property | You or a close family member, now or after the purchase | Tenants, or nobody: it's an investment or business property |
| Typical use | Chain breaks, buying before you sell, expired mortgage offers, renovating your home | Auction buys, refurbishments, buy-to-let, development and commercial deals |
| Secured on | Your home or a close family member's home | Buy-to-let, HMO, commercial, development or investment property |
| FCA rules | Yes, under the FCA mortgage rules (MCOB) | No |
| Advice | Independent FCA-authorised adviser, required | Not required |
| Affordability check | Required | Mainly based on the property and the exit |
| Written cost illustration | Required before you commit | Given as good practice, not required by law |
| Reflection period | Yes, before drawdown | No |
| Financial Ombudsman access | Yes | No |
| Typical timescale | 3 to 6 weeks, as advice adds time | 5 to 21 days on clean cases |
| Maximum LTV | Up to 75% | Up to 85% on qualifying residential investment |
| Rates | From 0.55% pm | From 0.55% pm, a similar range |
Buying or refinancing an investment property? See unregulated bridging loans.
The independent FCA adviser, and why it costs you nothing
Because Aura Capital isn't FCA-authorised, we can't give regulated mortgage advice. So on every regulated case we arrange a qualified, independent FCA-authorised adviser for you. You don't pay them. Their fee comes out of what the lender pays us when the loan completes.
Independent
The adviser works for neither us nor the lender. They have a legal duty to act in your best interests.
Qualified and authorised
They hold the FCA authorisation and qualifications needed to advise on regulated mortgages and bridging loans.
No cost to you
No advice fee and nothing hidden in the loan. Their cost is covered by the fee the lender pays us.
Their job is to check the loan is right for you before you commit. They look at the exit, the affordability, the total cost and your wider circumstances. If they think it isn't suitable, they have to tell you, whatever that means for our fee. When your home is the security, that's exactly what should happen.
When do homeowners use regulated bridging?
When a move needs to complete faster than a sale or a mortgage can manage. Chain breaks are the most common reason we see.
Chain break
Your buyer pulls out, or the chain collapses below you, but you've exchanged or are about to on your next home. The bridge funds the purchase, and you repay it when your old home sells.
Buy before you sell
Buy the home you want before yours has sold, so you don't lose it while you wait. The loan is secured on your current home and repaid from its sale.
Mortgage expired or declined
Your mortgage offer has been withdrawn, expired or declined late on, and the completion date can't move. The bridge completes the purchase while a new mortgage is arranged, usually for 3 to 6 months.
Downsizing
Buy the smaller home first and sell the larger one after. Common for older homeowners who want the new place secured before they put the old one on the market.
Renovating your home
Fund significant works on your main home, then refinance onto a standard mortgage at the improved value.
Refinancing short-term debt
A short-term loan on your home is about to expire before the long-term mortgage is ready. The bridge buys time and avoids default on the old loan.
Buying a home at auction that you'll live in is regulated too. Auction completion is usually 28 days and regulated cases take 3 to 4 weeks, so talk to us before the auction. See auction bridging loans.
Regulated bridging loan rates and costs in 2026
Rates start from 0.55% a month on the strongest cases: a standard home, a conservative LTV and an exchanged sale. Most chain break and buy-before-sell cases price between 0.65% and 0.85% a month. The rate depends on the LTV, the property, your credit history and how solid your exit is.
| Scenario | Indicative rate | LTV | Notes |
|---|---|---|---|
| Chain break, sale exchanged | From 0.55% pm | Up to 65% | Best pricing. Clear exit date |
| Chain break, sale agreed but not exchanged | 0.65% to 0.75% pm | Up to 70% | The most common chain break case |
| Buy before you sell | 0.70% to 0.80% pm | Up to 75% | On the market but not sold yet |
| Mortgage expired or declined | 0.75% to 0.90% pm | Up to 70% | Repaid by the replacement mortgage |
| Renovating your main home | 0.75% to 0.95% pm | Up to 70% | Works and the refinance are assessed together |
| Adverse credit | 0.85% to 1.10% pm | Up to 65% | Affordability rules apply. The exit carries a lot of weight |
What a regulated bridge costs in total
| Cost | Typical range | Notes |
|---|---|---|
| Interest | From 0.55% pm | Usually retained or rolled up, so there are no monthly payments |
| Arrangement fee | 1% to 2% | Of the gross loan, taken from the advance on completion |
| Valuation | £300 to £800 | Standard homes. Automated or desktop valuations on some properties |
| Your legal fees | £1,000 to £2,500 | Depends on the title and how complex the case is |
| Lender's legal fees | £500 to £1,500 | Paid by you on most regulated loans |
| Independent adviser | £0 | Paid from the lender's fee to us |
| Exit fee | 0% to 1% | Some regulated products have no exit fee |
Before you commit, the adviser has to give you a formal written illustration of the loan, known as the ESIS. It sets out the rate, every fee, the total you'll repay and what happens if you can't repay on time. You won't be asked to go ahead on a verbal quote.
Work out your own figures
Pick your situation, enter the value and the loan. Takes about a minute, with no credit search.
What FCA protections do you get on a regulated bridge?
Six protections that don't apply to unregulated bridging. They're why regulated cases take a little longer, and why they're the right product when it's your home.
Affordability check
The lender has to check you can afford the loan and repay it. It's a safeguard to make sure the loan works for you before it's offered.
Written cost illustration
Every cost, the total repayable and the consequences of not repaying, in writing before you commit.
Reflection period
Time between the offer and drawdown to think it over, get more advice or walk away without penalty.
Financial Ombudsman Service
If something goes wrong with the lender or the adviser, you can take a complaint to the Ombudsman for free.
Suitability assessment
The adviser has to check the loan suits your circumstances and that your exit is realistic, and act in your best interests.
FSCS cover
Where the lender or adviser is covered by the Financial Services Compensation Scheme, you may be protected if they fail.
How a regulated bridging loan works, step by step
Most straightforward regulated cases complete in 3 to 4 weeks from instruction, and more complex ones in 4 to 6 weeks. The advice, valuation and legal work run side by side to save time.
Assessment, same day
We look at the property, whether it's your home, how much you need, your timescale and how you'll repay. We confirm whether the case is regulated and the quickest route to completion.
Independent adviser arranged
A qualified FCA-authorised adviser contacts you, usually within 24 to 48 hours, and reviews your circumstances. You don't pay them.
Cost illustration and lender
The adviser gives you the full written illustration and recommends a lender that suits your circumstances, rate and timescale.
Valuation and legal work
Valuation and solicitors are instructed together. Automated or desktop valuations can come back the same day or within 48 hours. A full RICS inspection usually takes 5 to 7 working days.
Offer, reflection period, completion
The lender issues a regulated offer. After the reflection period, the loan completes once the legal work is done.
Have these ready
- The property address, and whether you live there or will
- Its value and any mortgage balance
- How much you need and what it's for
- When you need to complete
- Your exit: a sale or a new mortgage
Tell us early
- Whether your sale is agreed or exchanged
- Any adverse credit
- Anyone else who lives in the property
- Any deadline you can't move
Regulated bridging case studies
Three recent homeowner cases.
Chain break three days before completion, Surrey
The buyer's mortgage offer was withdrawn three days before completion. The homeowner had exchanged on their next home with a £38,500 deposit at stake. We secured £385,000 against their £620,000 home (62% LTV) at 0.72% pm, completed in 18 days. Their home sold six weeks later and the bridge was repaid in month 2, costing about £5,540 in interest plus fees.
£385,000, 62% LTV, 18 daysDownsizing before selling, Kent
A couple in their 60s found a smaller home before listing theirs. We arranged £450,000 against their £875,000 mortgage-free home (51% LTV) at 0.65% pm, completed in 21 days. Their home sold in month 3. The bridge cost about £8,775 in interest plus fees.
£450,000, 51% LTV, 21 daysMortgage offer expired after exchange, London
A first-time buyer had exchanged on a £540,000 flat when their mortgage product was withdrawn, putting a £54,000 deposit at risk. A £432,000 bridge (80% LTV) at 0.89% pm completed in 14 working days. The replacement mortgage repaid it in month 3.
£432,000, 80% LTV, 14 working daysRegulated bridging loan FAQs
What is a regulated bridging loan?
A short-term, interest-only loan secured on a property that you or a close family member live in, or will live in. Because it's secured on a home, it falls under FCA mortgage rules, with an affordability check, a written cost illustration, a reflection period and access to the Financial Ombudsman Service. It's mostly used for chain breaks, buying before you sell and expired mortgage offers.
How do I know if my bridging loan is regulated?
Ask who lives in the property. If it's, or will be, the home of you or a close family member (spouse, civil partner, parent or child), the loan is regulated. If it's a buy-to-let, commercial, development or other investment property you'll never live in, it's almost always unregulated. We confirm the position at the first assessment, before you pay anything.
What's the difference between regulated and unregulated bridging?
Regulated bridging is secured on a home and is covered by FCA rules: independent advice, an affordability check, a written cost illustration, a reflection period and Ombudsman access. Unregulated bridging is for investment or business property and has none of those. Regulated loans go up to 75% LTV and usually take 3 to 6 weeks. Unregulated loans can complete in days.
Can I use regulated bridging for a chain break or to buy before I sell?
Yes, these are the two most common reasons people use one. If your buyer pulls out, or you want to buy before your home has sold, the bridge funds the purchase now and is secured on your existing home. You repay it when your old home sells. Rates start from 0.55% a month where your sale has exchanged, and most cases price between 0.65% and 0.85%.
Can I buy a new home before selling my current one?
Yes. A buy-before-sell bridge is secured on your current home and repaid when it sells. It means you don't lose the property you want while you wait for a buyer. These cases usually price between 0.70% and 0.80% a month, up to 75% LTV.
What FCA protections do I get on a regulated bridge?
An affordability check by the lender, a full written cost illustration before you commit, a reflection period before drawdown, a suitability assessment by an independent adviser and access to the Financial Ombudsman Service. You may also have FSCS cover if the lender or adviser is covered and fails.
Do I have to pay for the independent adviser?
No. When a regulated case completes, the lender pays Aura Capital a fee, and the adviser's cost comes out of that. There's no separate advice fee and nothing added to your loan. The adviser is independent of us and the lender, and must act in your best interests.
Can Aura Capital arrange regulated bridging loans?
Aura Capital isn't FCA-authorised and can't give regulated mortgage advice. On regulated cases we arrange a qualified, independent FCA-authorised adviser for you, at no cost to you, and they handle the advice and the regulated parts of the case.
How long does a regulated bridging loan take?
Most straightforward cases complete in 3 to 4 weeks from instruction. Higher LTV, adverse credit or unusual properties usually take 4 to 6 weeks. The advice process and reflection period add time compared with unregulated bridging, but automated and desktop valuations help keep it short.
What are typical rates for regulated bridging loans?
From 0.55% a month on the strongest cases, with a standard home, an LTV under 65% and an exchanged sale. Most chain break and buy-before-sell cases price between 0.65% and 0.85% a month. Adverse credit cases usually price between 0.85% and 1.10%.
What is the maximum LTV on a regulated bridging loan?
Up to 75% on qualifying cases. Lenders are more cautious when the security is someone's home, so this is lower than on unregulated investment bridging. You're most likely to get 75% with clean credit and a strong exit, such as an exchanged sale.
Do I make monthly payments on a regulated bridging loan?
Usually not. Interest is normally retained or rolled up and repaid with the loan at the end, so there's nothing to pay each month. Paying interest monthly is possible if you'd rather keep the final balance lower.
How long can a regulated bridging loan last?
From 1 to 24 months. Most homeowner cases run for 3 to 12 months. Choose a term with a buffer beyond when you expect to sell or refinance.
Can I use a regulated bridge to buy at auction?
Yes, if you or a close family member will live in the property. Auction completion is usually 28 days and a regulated bridge typically takes 3 to 4 weeks, so get in touch before the auction rather than after.
What happens if my home doesn't sell before the bridge ends?
Speak to the lender as soon as it looks likely. Don't leave it to the last day. Most regulated lenders will discuss an extension for a fee, a new sale strategy or a refinance. The adviser checks how realistic your sale timescale is before you commit, and the term should include a buffer.
Can I get a regulated bridging loan with bad credit?
Yes. Adverse credit doesn't rule you out. Lenders still check affordability, but the equity and the strength of your exit carry a lot of weight. Satisfied CCJs, defaults and past mortgage arrears can be accepted where the LTV is conservative, with rates usually between 0.85% and 1.10% a month.
Who wrote this page
Harry Baker
Harry holds an MSc in Real Estate & Finance from the University of Reading. He works with homeowners and their independent FCA-authorised advisers on chain breaks, buy-before-sell moves and other regulated bridging cases across the UK.
- Team transacted
- £500m+
- Lender panel
- 50+
How we compiled the figures
Rates, LTVs and costs reflect regulated cases placed through our panel and are reviewed monthly. Case study costs are interest only and round to the nearest pound. Every case is priced individually by the lender.
Related bridging products
Each product page has its own criteria and rates.
Keep your purchase on track with the right advice
Tell us the property, whether you live there or will, the loan you need and how you'll repay it. We'll confirm whether it's regulated the same day and arrange your independent adviser within 24 to 48 hours.
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 the end of the term. Do not take out a regulated bridging loan without a full written cost illustration and independent regulated advice that it suits your circumstances. All figures on this page are indicative, based on our lender panel in October 2026, and subject to lender underwriting, valuation and legal checks. Aura Capital is a trading name of Chammosair Limited, registered in England & Wales, company no. 15786496. Aura Capital is not authorised or regulated by the Financial Conduct Authority and does not give regulated advice. On regulated cases we arrange an independent FCA-authorised adviser, who carries out all regulated advice and activities.