Mortgage guide
Regulated bridging loans for homeowners
Bridging finance for a home you intend to occupy and the role of regulation.
- Published
- 13 Apr 2026
- Last reviewed
- 6 Oct 2026
- Reading time
- 3 min
Regulated bridging loans for homeowners
Regulated bridging loans for homeowners
A bridging loan is regulated by the Financial Conduct Authority (FCA) when it is secured on a property that is, or will become, the borrower's main residence. Loans for buy-to-let, commercial property, or land with no intention to occupy are usually unregulated. Regulated status brings consumer protections: standards on affordability and suitability, transparency of terms and costs, advice and disclosure requirements, and careful assessment of the exit.
Homeowners use regulated bridging for: buying a new main residence before the existing home has sold (the chain-break case. The loan is secured on one or both properties and repaid when the sale completes); purchasing a main residence at auction where mortgage timescales cannot meet the deadline; buying or fixing an uninhabitable home. No kitchen or bathroom, structural issues, significant disrepair, then refinancing onto a residential mortgage once habitable; probate and inheritance situations where beneficiaries need short-term funding to retain a family home; divorce or separation settlements while longer-term arrangements are finalised; and land purchases for a self-build the borrower intends to occupy. Affordability on a homeowner bridge is usually assessed on the exit rather than monthly income, and interest can be rolled up or deducted so no payments fall due during the term.
One consumer point deserves stating plainly: bridging loans are not covered by the Financial Services Compensation Scheme unless the borrower intends to live in the property, so investors using unregulated bridging should satisfy themselves they are dealing with a reputable lender.
Bridging calculator
Estimate the gross loan against property value before interest, fees and retained amounts.
Bridging Loan Criteria
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Criteria | Detail |
|---|---|
| Borrowers | Personal, limited company (Ltd co), LLP and offshore trusts, depending on the lender |
| Repayment type | Interest only or repayment |
| Term | Short term. The maximum term varies by lender; in our experience the minimum term is usually 1 month, and 3 months with some lenders |
| Experience | Not always required; it depends on the lender and the exit |
| Max applicants | Varies by lender |
| Valuation types | Automated valuation (AVM), Market Value 1 (MV1) yield based, market value (MV), 180-day or 90-day value, depending on the lender and how it labels the valuation basis |
| Regulated and unregulated | Yes, both: regulated where the borrower or a close family member lives, or will live, in the property |
| Credit searched | Usually, depending on the lender |
| Credit scored | Varies by lender; the decision rests mainly on the property and the exit |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Loan to value | Rate |
|---|---|
| 65% LTV | 0.62% per month (2% lender fee) |
| 75% LTV | 0.72% per month (2% lender fee) |
| 85% LTV | 0.9% per month (2% lender fee) |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| Additional Security | 100%+ |
| Residential | 90% |
| Commercial | 75% |
| Land | 70% |
Related case studies
Frequently asked questions
Are bridging loans regulated?
Some are. A bridging loan is regulated by the FCA when it is secured on a property that is, or will become, the borrower's main residence: in law, where at least 40% of the property is used, or is intended to be used, as a dwelling by the borrower or a close family member. Bridging loans for buy-to-let, investment, commercial property or land are usually unregulated.
Is self-build bridging regulated?
A self-build bridge is regulated if secured on a home you or a related person live in, such as your current home. A plot intended for your own home can also fall within regulation. Classification must account for intended use, not only whether a building is occupied today.
Is a remortgage after a regulated bridging loan regulated?
Usually, yes. A regulated bridging loan is secured on a home, and a remortgage of a home to an individual, where at least 40% of the property is used as a dwelling, is a regulated mortgage contract unless an exclusion applies. The main exclusion, for an investment property loan, needs less than 40% to be lived in by you or a close relative and the loan to be mainly for a business (Regulated Activities Order, article 61A), so it does not cover a home that you or a close relative live in. The lender then applies the Financial Conduct Authority's Mortgage Conduct of Business (MCOB) affordability rules. A buy to let or commercial remortgage is usually not regulated.
What is the difference between regulated and unregulated bridging loans?
A regulated bridging loan is secured on a borrower’s main residence or intended main home and is FCA-regulated with affordability and consumer protections. An unregulated bridging loan is used for investment, buy-to-let, commercial property, or land, and is assessed mainly on the property and exit strategy.
What is a bridging loan?
Short-term secured lending, usually between three and twenty-four months, used where timing matters more than cost: buying at auction, breaking a chain, or funding works before a property can be refinanced conventionally. Interest is materially higher than a term mortgage, and lending is granted against a credible exit: the sale or refinance that will repay it. No exit, no loan.
Talk it through with an adviser
Speak to a Mortgage Lane adviser about your circumstances and the next steps.
Let’s talk property finance
Contact us
Tell us about your plans and a Mortgage Lane adviser will get in touch.
- Call our team
- +44 333 231 8206
- Email us
- enquiries@mortgagelane.com
- +44 7487 829005
- Opening hours
- Monday to Saturday, 8.30am–5.30pm
Closed Sunday
Your enquiry goes to our team, who will get in touch to discuss your next steps.