We specialise in fast, unregulated bridging loans packaged for urgent cases. Below information helps better understand the difference between regulated and unregulated bridging finance.
What regulated and unregulated bridging loans have in common:
- Short-term: repaid within a few months, up to 12–24 months at the most
- Fast to arrange: quicker than a conventional mortgage
- Secured: backed by property or land, which allows lenders to offer larger sums quickly
Regulated vs unregulated bridging loans at a glance
| Regulated Bridging Loan | Unregulated Bridging Loan | |
| Overseen by | The Financial Conduct Authority | Not supervised by the FCA |
| Secured against | Your own home or intended main residence | An investment, buy-to-let, or commercial property |
| Consumer protection | Higher, with affordability checks and fair treatment built in | Lower, as the borrower is assumed to have commercial experience |
| Application process | More structured, with fuller paperwork | Streamlined, though due diligence still applies |
| Decision based on | Your income and personal circumstances | The strength of the deal itself |
| Typical completion time | Longer | Faster |
| Typical use | Buying or funding your own home | Buy-to-let, commercial property, land, or development |
A clear exit strategy makes it easier to get approved, and helps you avoid extra costs if the loan runs past its term.
Get a decision in just hoursReady to discuss your loan?Get in touch and we will analyse the best solution to your needs.How it worksDecision in hoursNo obligationAll cases consideredLet's talkWhat is an exit strategy?
An exit strategy is how you plan to repay the bridging loan when it ends. Lenders will always ask about this before approving a loan, since bridging finance is short-term and needs a clear repayment plan.
Common exit strategies include:
- Selling the property the loan is secured against
- Selling another property you own
- Refinancing onto a standard mortgage
- Repaying from another source, such as a business sale or inheritance
What is a regulated bridging loan?
A regulated bridging loan falls under the Financial Conduct Authority (FCA). This applies when the loan is secured against a property the borrower lives in, or intends to live in as their main home.
Key features:
- Stronger consumer protection, since the loan is secured against your home
- An affordability check to confirm you can repay the loan
- A more detailed application process, including income checks and legal paperwork
- Takes longer to complete than an unregulated loan
What is an unregulated bridging loan?
An unregulated bridging loan is not overseen by the FCA. It is typically used for business or investment purposes, by property investors, developers and businesses.
Key features:
- Faster to arrange, which suits auction deadlines and below-market-value deals
- Lending decisions are based on the strength of the deal rather than the borrower’s income
- Due diligence still applies, but the process is more streamlined
- Commonly used for buy-to-let purchases, commercial property or land
Which one is right for you?
If the loan is secured against your own home, you need a regulated loan; this is a legal requirement. If you are buying an investment property, re-mortgaging one, or funding a development, an unregulated bridging loan is usually the better fit.
Talk to Goldhill Finance
We understand how fast the property market moves. If you need a quick, unregulated bridging loan, get in touch with our team.
