Regulated Vs Unregulated Bridging Loans

When it comes to bridging finance, there are a lot of options available that can help get you from A to B. Traditional mortgages may not be suitable for you, or perhaps you just have a quick turnaround and need funds promptly.

At Glide, we pride ourselves on offering simple lending solutions that help you achieve your property dreams.

We offer a variety of lending options, including:

In this blog, we're looking at bridging loans and some of the misconceptions between regulated and unregulated bridging.

While there are two main types of loans, regulated and unregulated, at Glide we only offer unregulated loans and cannot assist with any regulated loan options. 

Unregulated loans are not protected by the FCA. This is because the FCA does not regulate loans where the secured property or intended purchase is for business purposes.

Regulated Bridging loans

Regulated bridging loans are regulated by the Financial Conduct Authority (FCA), which means that they are subject to certain rules and regulations. 

A bridging loan becomes 'regulated' when the loan is secured against a property that is currently occupied. A regulated bridging loan can only be regulated if the borrower intends on residing in the property and occupying the property while the loan is in place.

These loans are typically used for residential purposes and have a maximum loan term of 12 months. Regulated loans ensure that consumers are protected against incorrect advice or miss-selling.

A common misconception is that regulated loans have lower interest rates, however this is incorrect. The FCA does not impose any restrictions on how much lenders can charge in interest or fees.

You cannot get a regulated residential bridging loan without either securing a mortgage for the exact balance or you plan on selling the property.

Traditional mortgages look at your affordability, which is determined by your income and outgoing costs. They will also look at your credit score and employment history before determining whether you qualify for a mortgage.

If this is a potential issue for you, bridging finance may be a better solution for you. However, you will still need to have a suitable exit strategy in place to pay the loan back within the specified period.


What can I use a regulated bridging loan for?

A regulated bridging loan can be used for a number of purposes, including:

Purchasing a property at auction
Property chain break
Purchasing a property you intend to live in

How much can I borrow with a regulated bridging loan?

The amount that you can borrow with a regulated bridging loan will depend on a number of factors, including the value of your property and your personal circumstances.

Unregulated Bridging Loans

Unregulated bridging loans are not regulated by the Financial Conduct Authority (FCA). 

A bridging loan is 'unregulated' when the property being used as security is for an investment or business purpose and will never be occupied by the borrower or any other family.

What can I use an unregulated bridging loan for?

Purchasing a buy-to-let property
Refurbishing a property
Flipping a property
New business venture

How much can I borrow with an unregulated bridging loan?

The amount that you can borrow with an unregulated bridging loan will depend on a number of factors, including the value of your property and your personal circumstances.

At Glide, we only offer unregulated bridging loans from £25,000 to £5million. We also offer competitive rates and can tailor our products to suit your individual needs.

Synopsis

Regulated bridging loans: A bridging loan is regulated when you intend to live in the purchased property for the duration of the loan

Unregulated bridging loans: Used more by property investors and developers to 'bridge' a payment gap with a quick turnaround. Property does not have to be habited.

Which bridging loan do I need?

As mentioned above, regulated and unregulated bridging loans differ in the fact that unregulated bridging is not protected by the FCA and are used primarily for business purposes.

We must clarify we do not offer regulated bridging loans or any assistance in obtaining one.

All Glide finance options are unregulated. If you would like to know more about our finance options, please browse our finance options or contact us directly.


At Glide, we are 100% privately funded and have the ability to offer flexible lending unique to you and your circumstances. 

We don't ask our borrower's to jump through hoops . Our terms are final and we do not move the goalposts.

Please get in touch if you want to hear more about what we offer, our bridging finance options, or just more information about us. 

A member of the Glide team will be happy to help.

Speak to Us Directly

Get in touch to get a bridging loan fast.

Head office Address: G4, 10 Whittle Road, Wimborne, BH21 7RU
Glide is a trading name of Glide Property Finance Ltd.
Glide Property Finance Ltd. trading as Glide is registered in England and Wales. Company number 15030064.
Glide are not regulated by the Financial Conduct Authority; certain types of loans are not regulated, for example loans for business purposes. Glide only offer loans for business purposes.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR PROPERTY.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
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