Quick Answer
Non-regulated bridging finance is a short-term loan secured against investment property, commercial property or land where the borrower is not using the property as their primary home. It sits outside the FCA's regulated mortgage rules, which means different consumer protections apply.
What Makes a Bridging Loan Non-Regulated?
The FCA regulates bridging loans when the security property is used or intended to be used as a dwelling by the borrower or a close family member. This is a regulated mortgage contract.
Non-regulated bridging finance applies where the security is used for business or investment purposes. The key examples are:
- Buy-to-let and investment properties
- Commercial property - offices, retail, industrial
- Land - with or without planning permission
- Development projects and HMOs
- Auction purchases for investment purposes
At BLB, all bridging finance we arrange falls into this category. We arrange unregulated finance for business and investment purposes only. We do not offer loans secured on a borrower's primary home.
Why Does It Matter?
The regulatory category affects what protections apply and how the lender assesses your application.
For non-regulated bridging loans, the lender focuses primarily on three things: the value of the security property, the loan-to-value, and your exit strategy. Income and credit scoring carry less weight than in a regulated mortgage assessment. This makes non-regulated bridging more accessible for investors who are asset-rich but may not fit a conventional income model.
A Simple Example
- An investor buys a vacant retail unit at auction → non-regulated
- A landlord refinances a buy-to-let portfolio property → non-regulated
- A developer acquires a brownfield site → non-regulated
- A homeowner bridges the gap between buying and selling their home → regulated (not what BLB arranges)
What Should You Check Before Applying?
If you're unsure whether a bridging loan is regulated, start by considering how the property will be used. If the loan is secured against your own home, or the home of an immediate family member, it is likely to fall within FCA regulation. Therefore, you should seek advice from a broker authorised to arrange regulated mortgage contracts.
However, if the property is being purchased solely for investment or business purposes, non-regulated bridging finance is generally the appropriate option. A specialist bridging finance broker can confirm the regulatory position before you submit an application, helping you choose the right lender and avoid unnecessary delays.
For more information, read our dedicated non-regulated bridging finance guide. Alternatively, if you'd like a broader overview of short-term property finance, explore our complete bridging loans UK guide.
Have a Question About Your Deal?
Book a free, no-obligation consultation with our specialist team. We will confirm whether your transaction is regulated or non-regulated, and outline your funding options.
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