Regulated Bridging Loans: Risks, Benefits, and Key Considerations

Regulated bridging loans are a secure and flexible short-term financing solution designed for personal use, overseen by the Financial Conduct Authority (FCA). Whether you're buying a new home, upgrading your primary residence, or navigating a time-sensitive property transaction, regulated bridging loans offer the speed and reliability you need.

What Are Regulated Bridging Loans?

Regulated bridging loans are short-term loans used for personal purposes, such as purchasing or upgrading a primary residence. These loans are FCA-regulated, meaning they come with strict consumer protections and safeguards to ensure fair treatment for borrowers.

The classification of a loan as regulated or unregulated depends on the borrower’s intentions and the property’s use. If the loan is for personal purposes and secured against a property where the borrower or their family lives (or will live), it will be classified as regulated.

Key Features:

  • Rates from 0.79% per month

  • Up to 80% Net LTV (Loan to Value) – Market leading leverage.

  • Up to 100% LTP (Loan to Purchase)

  • 75% LTGDV

  • Drawdowns – Flexible funding to match your project timeline.

  • Rolled-up interest or Semi-Serviced

  • No ERC (Early Repayment Charges)

Whether you're a seasoned Property Investor or a Developer looking to scale, our unregulated bridging loans provide the financial flexibility and speed you need to succeed. With competitive terms, no valuations, and a focus on your project's success, we’re here to help you achieve your property goals.

Ready to take the next step?

Contact us today to explore how our Unregulated bridging finance can work for you.

Fast Regulated Bridging Loans

Need funds quickly? Our fast regulated bridging loans are designed to provide speedy access to capital, often with approvals in as little as 48 hours. Whether you're bridging the gap between buying and selling a property or upgrading your home, we ensure a seamless and efficient process.

Regulated vs. Unregulated Bridging Loans

The key difference between regulated and unregulated bridging loans lies in their purpose:

  • Regulated Bridging Loans: Can be used for personal reasons, such as:

    • Purchasing a new primary residence.

    • Upgrading or renovating your current home.

    • Covering personal expenses related to property transactions.

  • Unregulated Bridging Loans: Strictly for business or investment purposes, such as property development or portfolio expansion.

What Can Regulated Bridging Loans Be Used For?

Regulated bridging loans are a flexible solution for personal property-related needs, including:

  • Purchasing a New Home: Secure your dream home before selling your current property.

  • Upgrading Your Primary Residence: Fund renovations or extensions to enhance your living space.

  • Time-Sensitive Transactions: Access quick capital to meet tight deadlines, such as auction purchases.

  • Avoiding Chain Breaks: Keep your property transaction on track by bridging financial gaps.

Are Regulated Bridging Loans Safe?

Yes, regulated bridging loans are a safe and reliable option for borrowers. As they are overseen by the FCA, they come with:

  • Consumer Protections: Ensuring fair treatment and transparency throughout the loan process.

  • Clear Terms and Conditions: Borrowers receive detailed information about interest rates, fees, and repayment schedules.

  • Ethical Lending Practices: FCA-regulated lenders adhere to strict standards, providing peace of mind for borrowers.

Key Considerations for Borrowers

While regulated bridging loans are secure and straightforward, borrowers should:

  1. Understand the Terms: Carefully review the loan terms, including interest rates, fees, and repayment schedules.

  2. Work with Reputable Lenders: Choose FCA-regulated lenders to ensure transparency and reliability.

  3. Have a Clear Exit Strategy: Regulated bridging loans are short-term solutions, so it’s important to have a plan for repaying the loan, such as selling your current property or refinancing.

Why Choose Aura Capital?

At Aura Capital, we specialise in regulated bridging finance, offering:

  • Expert Guidance: Our team will help you navigate the process and find the best loan for your needs.

  • Competitive Rates: Access affordable financing tailored to your situation.

  • Fast Approvals: Get the funds you need quickly to seize opportunities.

  • FCA Compliance: Advised by an FCA regulated advisor and your loan will be protected under FCA guidelines.

Whether you're buying a new home, upgrading your current property, or navigating a time-sensitive transaction, we’re here to support you every step of the way.

Get Started Today

Ready to explore your options for regulated bridging finance? Contact us today for expert advice and a free, no-obligation quote tailored to your needs.

Aura Capital – Your Trusted Partner in Regulated Bridging Finance

Got Questions?
Fill out our quick online enquiry form, and our team will provide personalised support to help you achieve your goals. Let us help you make your property dreams a reality!

  • The Loan-to-Value (LTV) ratio for an regulated bridging loan typically ranges from 65% to 80%, depending on factors such as the type of property, exit strategy, lender criteria, and the borrower's financial profile.

    Key factors influencing the LTV include:

    • Property type—whether leasehold, freehold, detached, or flats—can affect LTV ratios.

    • Exit strategy – A strong plan, such as refinancing or property sale, can help secure a higher LTV.

    • Borrower profile – Experienced investors with strong assets and liabilities often have access better terms.

    • Lender policies – Specialist lenders offer higher LTVs and target specific niches in the market. Choosing the right lender will maximise the LTV you are able to receive as a borrower.

    In some cases, lenders may offer up to 100% LTV if additional security, such as another property or valuable assets, is provided.

  • Regulated bridging loans can be completed in as little as 48 hours, with most transactions finalised within 10-20 working days.

    We offer the fastest regulated bridging options like no valuation or using an AVM’s or Desktop valuations can help reduce underwriting time.

    Whilst these products can cost more than their slower counterparts the upfront costs are often lower and the credit and underwriting processes are significantly accelerated.

    For cases with tight deadlines, such as auction purchases, working with a broker who can expedite the process and has leverage with lenders is crucial to ensure timely completion.

  • The unregulated bridging loan market is vast, with thousands of lenders, each specialising in niche sectors.

    Some high-street banks offering unregulated bridging loans (typically through intermediaries or specialist teams) include:

    • HSBC

    • NatWest

    • Barclays

    • Lloyds Bank

    • RBS

    • Santander

    These banks usually work with specialist lenders or brokers to provide unregulated loans for businesses and property investors.

  • Bridging loan interest rates typically range between 0.5% and 2% per month, equivalent to an annual rate of 6% to 24%. This means the cost of borrowing can range from £500 to £2,000 per month per £100,000 borrowed.

    The average interest rate is around 0.95% per month, equating to £950 per month per £100,000. Rates can vary depending on the level of risk the lender is willing to take, often influenced by the loan-to-value (LTV) ratio. The higher the LTV, the higher the perceived risk, which may result in higher interest rates.

  • Terms vary by lender, with some imposing early repayment fees and others offering flexible repayment options. As these terms can change during the process, it's crucial to review illustrations, formal offers, and facility letters to check if penalties apply.

    We offer regulated bridging loans with no early repayment charges—contact us today!

Top Tips for a Successful Bridging Loan Application

Securing a bridging loan can be a smart solution for short-term financing, but getting your application right is crucial. Follow these expert tips to boost your chances of approval and avoid costly mistakes.

  1. Ensure You Meet the Lender's Criteria
    Before applying, make sure your property and financial profile align with the lender's requirements. Unregulated bridging loans vary widely, so choosing a lender who is eager to take on your deal can help you avoid unnecessary legal and valuation costs.

  2. Work with a Specialist Broker
    A bridging finance expert can help you find the best rates and terms for your situation. Brokers have access to hundreds of lenders, including private investors and family offices, who actively seek new business. Just like insurance, using a specialist broker often provides better value than going directly to the most advertised lenders. They also know which lenders are reliable, fair, and committed to delivering on their promises without last-minute changes.

  3. Have a Strong Exit Strategy
    Lenders want to see a clear plan for repaying the loan. Whether you plan to sell the property, refinance with a long-term mortgage, or use another repayment method, a solid exit strategy reassures lenders and improves your chances of approval.

  4. Choose a Transparent and Fair Lender
    Avoid lenders or brokers who have hidden fees or unfavorable terms. Always ensure that all costs, including interest rates, arrangement fees, and exit fees, are clearly outlined and fully transparent.

  5. Partner with a Reputable Provider
    Choose a lender that aligns with your needs, treats clients fairly, and has a strong market reputation. Some large, heavily marketed lenders impose strict and often punitive terms on direct clients, so be cautious and do your research.

  6. Understand the Loan Terms Before Signing
    Before committing, make sure you fully understand all the terms and conditions. Review interest rates, fees, repayment schedules, and other critical details to ensure they align with market standards and your financial goals.

  7. Work with a Well-Capitalised Lender
    Choose a lender with sufficient funds to complete your loan without delays. Be cautious with peer-to-peer lenders, as they may need extra time to raise capital, and terms could change throughout the process.

  8. Define Your Loan Purpose Clearly
    Lenders and brokers need to understand why you require the loan for regulatory compliance and product matching. Whether it's for property acquisition, development, or covering a short-term cash gap, having a clear and well-documented purpose will strengthen your application.

  9. Avoid Unnecessary Delays and Costs
    Ensure you meet all lender criteria before applying to prevent unexpected cancellations or costly delays. Have your broker verify this in advance, or choose a product that allows switching if needed.

By following these tips, you can streamline your bridging loan application, secure the right funding, and achieve your financial goals with confidence.

How to Apply

  1. Contact Us
    Apply directly with us, and we’ll discuss the pros and cons of no valuation bridging loans, ensuring you understand your options.

  2. Receive a Quote
    Get a personalised quote for a no valuation or desktop valuation bridging loan by submitting your case for a no-obligation quote. We’ll assess your needs and provide a tailored solution.

  3. Guidance
    We guide you through the application process, offering market-leading rates from our investors or the wider bridging loan market. Our expert advice ensures you get the best deal.

  4. Processing
    We handle all aspects of the loan, including underwriting, legal procedures, and valuation (if applicable), until the loan is successfully completed.

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