Regulation
Regulated Bridging
A bridging loan secured against a property that the borrower (or close family) will live in — covered by FCA consumer-protection rules.
Regulated bridging applies whenever the security property is, or will become, the borrower's primary residence — or a close family member's. The FCA's consumer mortgage rules apply: cooling-off period, full fee disclosure on a Mortgage Illustration, access to the Financial Ombudsman.
On our panel, regulated bridges are offered on a retained-interest basis only, with a 12-month maximum term. Serviced interest isn't permitted on regulated cases because of FCA affordability assessment requirements.
Common regulated cases: chain breaks on owner-occupier moves, downsizing, auction purchases of your own home, raising capital against your home for a deposit elsewhere. If you or close family will live in the security property, the bridge is regulated by definition.