- Regulated bridging
- Secured on your home or intended home
- Unregulated bridging
- Investment or commercial property
- FCA protection
- Applies only to regulated bridging
- Underwriting speed
- Unregulated is often faster
What triggers FCA regulation
A bridging loan is regulated when it's secured against a property that is, or will be, occupied by you or a close family member as a main residence, in whole or part, at more than 40% of the floor area. This brings FCA conduct rules, affordability checks and specific disclosure requirements into play.
What unregulated bridging covers
Unregulated bridging applies to investment property, commercial premises, and any purchase or refinance with no residential occupation by the borrower or family — most buy-to-let and development deals fall here. Underwriting focuses on the asset and exit strategy rather than personal affordability in the consumer-credit sense.
When each option applies
This isn't really a matter of preference, but of fact — though the practical implications differ.
- Regulated applies whenever you or family will live in the secured property
- Unregulated applies to pure investment, commercial or development security
- Regulated bridging comes with statutory cooling-off and disclosure protections
- Unregulated bridging can move faster since consumer-credit checks don't apply
Why it matters to your application
Not every lender on the panel offers regulated bridging, since it requires FCA authorisation for that activity specifically, which narrows the field for owner-occupied deals. Misclassifying a case at application stage — treating a partly-occupied property as unregulated, for example — can cause a lender to decline late in underwriting.
Frequently asked
Is bridging on a buy-to-let property regulated?
No, provided there's no residential occupation by you or family — pure BTL bridging is unregulated.
What protections does regulated bridging give me?
FCA conduct rules apply, including affordability assessment, clear disclosure of costs, and access to the Financial Ombudsman Service if something goes wrong.
Can a family member living in the property trigger regulation?
Yes — if a close family member will occupy more than 40% of the property, the loan is typically classed as regulated.
Is unregulated bridging riskier for the borrower?
Not inherently — it simply means fewer statutory protections apply, so it's more important to rely on clear terms and a specialist broker upfront.
Do all bridging lenders offer regulated loans?
No, a meaningful number of specialist bridging lenders only operate in the unregulated space, which affects which lenders can be approached for an owner-occupied case.
Unsure which category your bridge falls into?
Tell us about the property and who will occupy it and we'll confirm the regulatory status before recommending lenders.
Related reading
Situations this applies to
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