Regulated Bridging Loans

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What is Regulated Bridging Finance?

A regulated bridging finance is a form of short-term, property backed loan which is secured against the dwelling of the borrower.

When you need to raise money quickly to secure your perfect home, regulated bridging finance could well be the right product for you.

Read on below to find out more or fill in the form to talk to an expert.

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Latest Regulated Bridging Loan Offers

View some of the latest regulated offers from leading lenders.

Product BL0003 - Apply Now
Interest Rate
0.47%
Lender Fee
1.00%
Max LTV
50%
Security Type
Residential
Min-Max Loan
£250,000 - £50,000,000
Max Term
12 Months
Regulated Accepted?
Yes
Product BL0004 - Apply Now
Interest Rate
0.48%
Lender Fee
2.00%
Max LTV
50%
Security Type
Residential
Min-Max Loan
£250,000 - £50,000,000
Max Term
12 Months
Regulated Accepted?
Yes
Product BL0011 - Apply Now
Interest Rate
0.63%
Lender Fee
2.00%
Max LTV
60%
Security Type
Residential
Min-Max Loan
£1,000,000 - £5,000,000
Max Term
12 Months
Regulated Accepted?
Yes
CLICK HERE TO COMPARE MORE MARKET LEADING PRODUCTS

Criteria

Below are the main criteria points to consider when taking out regulated bridging finance.

1Up to 70% Loan to Value (or 100% with additional security).
2Rates from 0.48% per month.
3Loans from £25,000 with no maximum loan size.
4Borrow from 1 month up to 12 months.
5Any security considered.
6Interest can be rolled into the loan.
7Loans with no early repayment charges available.
8We will consider any realistic exit route.

How Much Can I Borrow For A Regulated Bridging Loan?

Regulated bridging finance tends to be restricted to a maximum of 70% loan to value (LTV), although up to 100% funding is possible with additional security.

We can arrange loans from £25,000, with no strict maximum loan. We have funders in place who can fund very large loans on a case by case basis.

How Much Does A Regulated Bridging Loan Cost?

There are many bridging finance lenders out there, all of whom price their loans differently. We can secure regulated bridging finance from 0.49% per month for loans of £25,000+ and 0.48% per month for loans over £250,000.

On top of the monthly interest rate, most lenders will charge an arrangement fee of between 1-3%, although this is usually 2%. In some cases, an exit fee will also be charged, although this is becoming increasingly rare.

We always scour the whole market on your behalf to secure you the best possible regulated bridging finance rates. We will always look to offer rates as close to the market leading rates mentioned above as possible.

How Long Will My Application Take to Complete?

Where completion is required in a very tight deadline, a regulated bridging loan would be used to ensure the property isn’t remarketed due to the delays. This would stop the client from losing out on the property.

We can fund regulated bridging loans on the same day under extreme circumstances. Generally, it is realistic to expect your loan to complete in 5-14 days.

What Does ‘Regulated’ Mean & How Does This Affect Me?

The term regulated when discussing bridging loans means that the loan is regulated by the Financial Conduct Authority (FCA).

The FCA are a regulator for financial services and aims to protect consumers, enhance the integrity of the industry and promote competition in the interests of consumers.

All of this means that when taking a regulated bridging loan, you are subject to a higher level of protection from unscrupulous lending practices.

Regulated Bridging Loan Uses

As with other types of bridging loan, there are numerous uses for regulated loans. One of the most common uses is people who are looking to purchase a property before their current property is sold.

This differs from unregulated applications, which are more commonly associated with auction purchases and refurbishment projects.

Of course, this is not exhaustive, and regulated bridging finance can be used for almost any purpose.

What Are The Differences Between Regulated & Unregulated Bridging Loans?

Regulated bridging loan applications are subject to tighter rules than unregulated applications. The maximum loan to value is restricted to 75%, whereas unregulated loans can be taken up to 80%.

What To Expect When Applying For Regulated Bridging Finance

When applying for a regulated bridging loan, you can expect a detailed discussion around your current circumstances and what it is that you’re trying to achieve.

Without doing this, it’s impossible to know whether a bridging loan is the right option for you.

As bridging loans are more expensive than many other types of secured borrowing, it’s important that you get this right.

Is The Process More Difficult Than Unregulated Bridging Loans?

There may be additional information required and some checks may be more stringent than unregulated applications.

It’s important to remember that these checks are designed to protect you and they work well.

Some applicants are tempted to say that they will not be living in the subject property to benefit from simpler criteria.

This is a bad idea as it will reduce your rights and will put you at risk of repossession should this come to light after completion of your loan.

about-the-author-gary-hemming

About The Author

This content was produced by our Commercial Lending Director, Gary Hemming. Gary has over 15 years’ experience in financial services and specialises in bridging loans, commercial mortgages, development finance and business loans. He is widely respected in his field and regularly provides expert commentary for specialist trade publications, specialist business press as well as local and national press.

Gary Hemming CeMAP CeFA CeRGI CSP  -  
Commercial Lending Director

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