Unregulated Bridging Loans

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What is an Unregulated Bridging Loan?

An unregulated bridging loan is a short-term, property-backed method of borrowing which is designed to ‘bridge’ a gap in funding.

This type of finance is currently cheaper than ever and can be used for a variety of purposes.

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

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Latest Unregulated Bridging Finance Offers

View some of the latest unregulated bridging finance offers from major lenders.

Product BL0001 - Apply Now
Interest Rate
0.44%
Lender Fee
1.00%
Max LTV
55%
Security Type
Residential
Min-Max Loan
£250,001 - £50,000,000
Max Term
18 Months
Regulated Accepted?
No
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 BL0009 - Apply Now
Interest Rate
0.59%
Lender Fee
3.00%
Max LTV
70%
Security Type
Residential
Min-Max Loan
£250,000 - £50,000,000
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 an unregulated bridging loan.

1Up to 80% Loan to Value (or 100% with additional security).
2Property in a poor state of repair considered.
3Rates from 0.44% per month.
4Loans from £25,000 with no maximum loan size.
5Borrow from 1 month up to 24 months.
6Any security considered.
7Interest can be rolled into the loan.
8Loans with no early repayment charges available.
9We will consider any exit route.
10Refurbishment or conversion accepted.
11Adverse credit accepted.
12Loans available throughout the UK.

How Much Can I Borrow?

We fund unregulated bridging loans up to 80% loan to value (LTV), and can even lend up to 100% LTV with additional security. We can fund loans between £25,000, with no maximum size.

How Much Will It Cost?

Lenders are competing heavily on rate and customers are greatly benefitting from this increased competition, through cheaper loans.

We can offer loans from 0.44% per month up to 55% LTV and can even lend at 0.64% per month at 75% LTV!

In addition to the monthly interest cost, lenders charge a lender arrangement fee, this is a fee for setting up the loan. This fee is usually 2% of the loan amount, although this is sometimes discounted as low as 1%, especially on larger loans.

How Long Do They Take to Complete?

Unregulated bridging finance can be completed very quickly, sometimes even on the day of application.

Usually, a completion of 5-14 days is realistic, depending on the lender used. If you’re looking to secure the lowest rates, it might be worth allowing slightly longer for completion as the lender may want to undertake some additional checks.

What Does Unregulated Mean?

Unregulated refers to the fact that the loan being taken does not fall under the protection of the Financial Conduct Authority (FCA).

This means that you when taking out an unregulated loan, you will have less protection in the event of something going wrong.

The FCA rules focus on treating customers fairly in both the advice given and how the account is handled once the loan is in force.

Should I Be Warier When Dealing with An Unregulated Lender?

Although you should always undertake due diligence on the lender that you’re looking to borrow from, it’s even more important when taking out an unregulated loan.

There are a lot of new bridging lenders entering the market all the time and it’s important that you work with the right ones. Although it’s rare for a lender to be fraudulent, there are often terms included in the contracts that could come back to haunt you.

There are a few key factors to consider when looking to work with a new lender:

  • What is the reputation of this lender? Look online to find reviews from existing customers.
  • What happens if there is a problem with the loan? Do they charge higher default interest rates?
  • How long have they been operating? Companies with a strong reputation over a number of years should be trusted more than newer companies with less history.
  • Are they a member of other trade organisations designed to improve standards, such as ASTL (Association of Short-Term Lenders)?

Although we offer unregulated bridging finance, we are an FCA regulated broker and we strive to treat all our customers with the same level of care whether it is regulated or unregulated.

Can I Get an Unregulated Bridging Loan?

As there are fewer rules for unregulated loans and more lenders in the market, there is increased competition between lenders. This has led to more flexible criteria, which is a big benefit to borrowers.

As such, there is usually a lender for most situations. Unregulated finance is available up to 80% LTV and with rates starting at 0.44%.

The difference in cost between different lenders and brokers can be quite high, so it’s important that you look for the best deal.

Upfront Fees and Broker Fees

One thing to be wary of is paying out upfront fees. There are a number of brokers and lenders who will ask for funds before they even look at your application.

Our advice is that you should never pay upfront fees to engage. As such, we never charge upfront fees to our clients.

In addition, we don’t charge broker fees for bridging loans over £100,000. Broker fees of between 1-2% of the loan amount are common in the market.

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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