Unregulated Bridging Loans
Unregulated bridging loans are short-term secured facilities used for investment and commercial property transactions. They typically apply where the borrower (or immediate family) will not occupy the property as a primary residence.
What Are Unregulated Bridging Loans?
Unregulated bridging loans are not subject to Financial Conduct Authority (FCA) mortgage regulation where the property is not, and will not be, occupied by the borrower or their close family.
These facilities are commonly used for:
- Investment property purchases
- Auction acquisitions
- Refurbishment projects
- Development exits
- Commercial or semi-commercial assets
You can learn more about the distinction on our
Regulated Bridging Loans page.
6 Powerful Advantages for Property Investors
1. Asset-Based Underwriting
Greater emphasis may be placed on the property value and exit strategy rather than personal affordability metrics.
2. Faster Decision-Making
Unregulated facilities can often be structured more efficiently due to reduced regulatory documentation requirements.
3. Flexible Exit Structures
Exit strategies may include refinance, sale, portfolio restructuring or development completion.
4. Structured Senior & Junior Layers
High LTV solutions may be achieved using layered capital structures. See
High LTV Bridging Loans.
5. Refinance of Existing Bridge Loans
Used where an existing bridge is approaching maturity and additional time is required. See
Rebridge Finance.
6. Development Exit Solutions
Structured bridging finance may be arranged once works reach practical completion or snagging stage. See
Development Exit Bridging.
When Do Unregulated Rules Apply?
A bridging facility is typically considered unregulated where:
- The property is not the borrower’s primary residence
- The borrower confirms they will not occupy the property
- The asset is an investment or commercial property
Regulatory status depends on occupancy, borrower circumstances and intended use of the property. Each case is reviewed individually.
Important Considerations
While unregulated bridging loans offer structural flexibility, responsible underwriting remains essential. Valuation, legal due diligence and a credible exit strategy are critical.
Borrowers should seek appropriate legal and financial advice before entering into any secured lending arrangement and should still deal with an FCA registered firm even if it is an unregulated product being sought. Berkeley Credit registration, search for whoever you deal with here at the FCA register.
Considering an Investment Bridge?
If your property will not be owner-occupied, we can review whether an unregulated bridging facility may be suitable.