Unregulated bridging loans for investment, commercial and business property
An unregulated bridging loan is short-term finance secured on property that neither you nor your close family will live in. Most UK bridging is unregulated. Because lenders underwrite on the property and your exit rather than a consumer affordability process, it's usually quicker and more flexible.
Rates from 0.55% a month, £26,000 to £25 million and above, over 1 to 24 months. Same-day decision in principle.
On this page
The short version
- A bridging loan is unregulated when the property isn't, and won't be, home to you or a close family member.
- Most UK bridging is unregulated: buy-to-let, HMOs, auctions, refurbishment, commercial, development and business purposes.
- Lenders lend on the property and the exit, so it's usually faster and more flexible than regulated lending.
- The trade-off: you don't get the FCA's consumer protections, so you need to understand the loan and have a solid exit.
- Rates from 0.55% a month, up to 80% LTV on residential investment and higher on qualifying HMO cases.
- Individuals, limited companies and SPVs can all borrow, including new companies.
What is an unregulated bridging loan?
An unregulated bridging loan is short-term finance secured on property that neither the borrower nor a close family member lives in or will live in. Because the security isn't a home, the loan falls outside the FCA's mortgage rules. It's used for investment, commercial and business purposes, and most UK bridging loans are unregulated.
Whether a loan is regulated comes down to one question: who lives, or will live, in the property? It doesn't depend on the lender, the loan structure or what the property is. If it's an investment you'll let, a building you'll convert, a commercial unit or a site, the loan is almost certainly unregulated.
In practice that changes how the loan works. You're treated as a professional borrower rather than a consumer. The lender focuses on what the property is worth and how you'll repay, not a formal affordability assessment, and there's no prescribed advice or reflection period to work through. That's why unregulated bridges can complete in days rather than weeks.
Unregulated doesn't mean unprotected. Contract law and property law apply in full, and lenders still underwrite every case properly. It's simply the normal framework for investment and commercial property finance, the same one that covers buy-to-let mortgages, commercial mortgages and development finance.
Regulated vs unregulated bridging: the occupancy test
The test is simple. If the property is, or will be, the home of you or a close family member (spouse, civil partner, parent or child), the loan is regulated. If not, it's unregulated. You don't get to choose. The facts decide.
| Unregulated bridging | Regulated bridging | |
|---|---|---|
| Who lives in the property | Nobody in your family. It's an investment, commercial or business property | You or a close family member, now or after the purchase |
| Typical use | Auctions, buy-to-let, HMOs, refurbishment, commercial, development, business funding | Chain breaks, buying before you sell, expired mortgage offers |
| FCA rules | No | Yes, the FCA mortgage rules (MCOB) |
| Underwriting | Asset-led: the property and the exit come first | Affordability assessed alongside the property |
| Advice | Not required | Required, from an FCA-authorised adviser |
| Protections | Contract and property law | Cost illustration, reflection period, Financial Ombudsman access |
| Speed | Days to a few weeks | Typically 3 to 6 weeks |
| Maximum LTV | Up to 80% on residential investment, up to 85% on qualifying HMO cases | Up to 75% |
| Term | 1 to 24 months | 1 to 24 months |
| Lenders | Most of the UK bridging market | A smaller group authorised for regulated lending |
If your loan turns out to be regulated, see regulated bridging loans. We arrange an independent FCA-authorised adviser for regulated cases, at no cost to you.
Is my bridging loan unregulated? Common situations
| Situation | Usually | Why |
|---|---|---|
| Buying a buy-to-let | Unregulated | Investment, nobody in your family will live there |
| Buying or converting an HMO | Unregulated | Investment property |
| Buying commercial property | Unregulated | Not a home |
| Auction purchase of an investment | Unregulated | Investment purpose |
| Refurbishing an investment property | Unregulated | You won't live there |
| Limited company borrowing on an investment | Unregulated | Company borrower, no family occupation |
| Second charge on a buy-to-let for business | Unregulated | Investment property, business purpose |
| Buying a home you'll live in | Regulated | It will be your main home |
| Buying a home for a close family member | Regulated | Family occupation |
| Second charge on your own home for business | Regulated | The security is your home |
A buy-to-let used as security is usually unregulated, but if the money is going towards a home you'll live in, it gets more complicated. Tell us the full picture at enquiry: what the money is for and who lives in every property involved. We'll confirm the position before you pay anything.
What are unregulated bridging loans used for?
Almost any property deal where you or your family won't be living in the security. These come up most.
Auction purchases
Auctions give you around 28 days to complete, too fast for a mortgage. Get a decision before you bid, then refinance or sell afterwards.
Auction bridging loansHMO purchases and conversions
Buy unlicensed HMOs or convert single lets, fund the works, license and let, then refinance onto an HMO mortgage.
HMO bridging loansRefurbishment
Buy property that isn't mortgageable yet, fund light or heavy works in stages, and refinance at the improved value.
Refurbishment bridgingCommercial property
Offices, shops, industrial and mixed-use, including vacant or part-let buildings a commercial mortgage won't touch yet.
Commercial bridging loansBusiness purposes
Raise short-term money for a business, such as working capital, a tax bill or a deposit, secured on investment or commercial property.
Second charge bridgingDevelopment exit and refinancing
Repay an expiring development loan or another bridge and buy time to sell or refinance.
Development exit bridgingNot sure which applies? Most real deals mix a few, such as an HMO bought at auction that needs works. We look at the whole case and match it to the right lender.
Unregulated bridging loan rates in 2026
Rates start from 0.55% a month on standard residential investment at a low LTV with a clear exit. Most cases price between 0.65% and 1.10% a month. Commercial property, second charges and adverse credit sit towards the top. Each product page has a fuller breakdown.
| Product | Rate from | Max LTV | Notes |
|---|---|---|---|
| Residential investment, first charge | 0.55% pm | Up to 80% | Widest choice of lenders and the best pricing |
| Auction, residential | 0.55% pm | Up to 80% | Fast valuation routes on qualifying cases |
| HMO | 0.55% pm | Up to 85% | Licensed and unlicensed. Rate reflects the licensing position |
| Refurbishment | 0.55% pm | Up to 80% | Works in stages. GDV lending on qualifying conversions |
| No valuation | 0.55% pm | Up to 75% | AVM, desktop or internal valuation |
| Development exit | 0.64% pm | Up to 80% | Completed or nearly complete schemes |
| Commercial and semi-commercial | 0.75% pm | Up to 75% | Secondary, vacant and specialist usually up to 65% |
| Bridge-to-let, semi-commercial | 0.75% pm | Up to 75% | Pre-agreed move onto a term loan on qualifying cases |
| Adverse credit | 0.75% pm | Up to 70% | The property and exit carry the most weight |
| Second charge | 0.95% pm | Up to 70% combined | Sits behind your existing lender, so priced higher |
What moves your rate
- LTV. The biggest factor on every product. Under 60% gets the sharpest pricing, and above 70% to 75% costs more.
- Property type. Standard residential prices best. HMO, commercial and specialist property costs more because it's slower to sell.
- Exit. An exchanged sale or approved refinance beats a plan to refinance.
- Experience. Established investors usually get better pricing than first-timers.
- Loan size. Loans of £1 million and above often attract keener pricing.
Arrangement fees from 1%. No upfront broker fee: we're paid by the lender on completion, disclosed before you proceed.
Are unregulated bridging loans safe? The real risks
An unregulated bridge is a normal, legitimate product, used every day by investors and developers. It isn't riskier by definition. But because the FCA's consumer protections don't apply, more of the responsibility sits with you. The risks are well known, and most come down to the exit.
The exit takes longer
Sales fall through, refinances get delayed and works overrun. If the loan runs past its term you'll face extension fees or default interest. Build a buffer into the term from day one.
The property is at risk
It's a secured loan. If you can't repay, the lender can take possession and sell the property. Never borrow without a realistic way to repay.
The total cost adds up
Monthly interest, arrangement and exit fees, valuation and legal costs on both sides. Compare the whole cost, not just the headline rate.
No Ombudsman or reflection period
Those protections are for regulated loans. Read the offer carefully, use a solicitor who knows bridging, and ask questions before you sign.
Have an exit you can evidence, a term with a buffer, a full picture of the costs and an independent solicitor. If you think the exit will take four months, ask for seven. Extensions cost far more than the extra time up front.
Who can get an unregulated bridging loan?
It's asset-led, so the property, your equity and the exit matter more than your income or employment.
Borrowers
Individuals, limited companies, LLPs, SPVs, partnerships and trusts. UK residents and non-UK nationals with specialist lenders. First-time investors and experienced landlords, developers and businesses.
Property
Residential investment and buy-to-let, licensed and unlicensed HMOs, commercial and semi-commercial, land and development sites, auction and vacant property, across England, Scotland and Wales.
Exit
Clear, credible and achievable within the term. For a sale, comparables and realistic pricing. For a refinance, the property must meet the term lender's criteria by the exit date.
Limited companies and SPVs
Most investment bridging now goes through a company or SPV, and new companies with no trading history are accepted on most products. Directors usually give personal guarantees, so their credit and residency matter too. Tell us the full director picture at the start.
Adverse credit
Bad credit doesn't rule you out. Satisfied CCJs, defaults, arrears and discharged bankruptcy are regularly considered where the property and exit are strong. If you'll exit by refinancing, your credit will matter to that lender too, so we check it at the start. See bad credit bridging loans.
How an unregulated bridge works, and how fast
Standard residential investment cases on an AVM or desktop valuation can complete in 5 to 10 working days. With a full RICS inspection, allow 14 to 21 days. Commercial cases usually take 1 to 3 weeks.
Decision in principle
We confirm the case is unregulated, which product and lender fit, and the realistic rate and LTV, before you pay anything.
Valuation and legals together
AVM, desktop or full valuation, with solicitors instructed on day one. Doing both at once is what keeps it quick.
Offer and underwriting
ID, the legal pack, company documents if applicable and evidence of your exit. We handle the lender's questions.
Completion
Funds go to your solicitor. We plan your exit from the day you complete.
Exit strategies
Sale
Sell the property, or another one, to repay the bridge. Comparables, agent appraisals and a realistic marketing period help.
Refinance
Move onto a buy-to-let, HMO or commercial mortgage, or development finance, once the property qualifies. Mortgage lenders take 4 to 12 weeks, and commercial 8 to 12.
Business or capital event
Repay from business income, a sale of shares, an inheritance or investment proceeds. It must be evidenced.
Unregulated bridging loan FAQs
What is an unregulated bridging loan?
Short-term finance secured on property that neither you nor a close family member lives in or will live in. Because the security isn't a home, the loan falls outside FCA mortgage rules. It's used for investment, commercial and business purposes, and most UK bridging is unregulated.
What is the difference between regulated and unregulated bridging loans?
It comes down to who lives in the property. If it's, or will be, home to you or a close family member, the loan is regulated, with FCA protections, independent advice and an affordability check. If not, it's unregulated: asset-led, usually faster, with a wider choice of lenders and higher maximum LTVs, but without FCA consumer protections.
Are unregulated bridging loans safe?
Yes, they're a normal, legitimate product used daily by investors and developers, and contract and property law still apply. The difference is that the FCA's consumer protections don't, so you need to understand the loan, check the total cost and have a realistic exit. Using an experienced broker and a solicitor who knows bridging helps.
How fast can an unregulated bridging loan complete?
Residential investment cases on an AVM or desktop valuation can complete in 5 to 10 working days. With a full RICS inspection, allow 14 to 21 days. Commercial cases usually take 1 to 3 weeks. Instructing solicitors on day one makes the biggest difference.
Who can get an unregulated bridging loan?
Property investors, landlords, developers and businesses, borrowing as individuals, limited companies, LLPs, SPVs, partnerships or trusts. First-time investors, non-UK nationals and people with adverse credit are all considered. What matters most is the property, your equity and the exit.
What are the risks of unregulated bridging?
The main one is the exit taking longer than the term, which means extension fees or default interest. The loan is secured, so the property is at risk if you can't repay. Costs add up across interest and fees, and you don't get the Ombudsman or a reflection period. A realistic exit and a term with a buffer handle most of it.
Can limited companies get unregulated bridging?
Yes. Most investment bridging is through a company or SPV, and new companies are accepted on most products. Directors usually give personal guarantees.
What rates are available on unregulated bridging loans?
From 0.55% a month on residential investment at a low LTV with a clear exit. Most cases price between 0.65% and 1.10% a month, with commercial, second charge and adverse credit towards the top.
What can unregulated bridging loans be used for?
Buy-to-let and HMO purchases, auctions, refurbishment and conversions, commercial property, development exits, equity release from investment property and business funding. Almost anything where nobody in your family will live in the property.
What happens if my case turns out to be regulated?
We confirm the position before you pay anything. If it's regulated, we arrange an independent FCA-authorised adviser for you, at no cost to you. See regulated bridging loans.
Who wrote this page
Harry Baker
Harry holds an MSc in Real Estate & Finance from the University of Reading. He arranges unregulated bridging for investors, developers and businesses across England, Scotland and Wales.
- Team transacted
- £500m+
- Lender panel
- 50+
How we compiled the figures
Rates and LTVs match our individual product pages and are reviewed monthly. Every case is priced individually by the lender.
Unregulated bridging products
Each product page has its own criteria and rates.
Get your unregulated bridging terms today
Send the address, property type, loan, term and exit. We'll confirm the same day that it's unregulated, which product fits and the realistic rate and LTV, before you commit to any costs. No upfront fees.
Your property may be repossessed if you do not keep up repayments on a loan secured on it. All applications are subject to underwriting, valuation, legal due diligence and exit assessment. Figures are indicative, based on our lender panel in October 2026. Aura Capital is a trading name of Chammosair Limited, registered in England & Wales, company no. 15786496. Aura Capital is a broker, not a lender, and is not authorised or regulated by the Financial Conduct Authority. We do not arrange regulated loans or give financial advice. On regulated cases we arrange an independent FCA-authorised adviser.