regulated bridging loan
Bridging loans are regulated by the Financial Conduct Authority under MCOB rules whenever the security property is, or will be, occupied by you or an immediate family member. The lender must assess your ability to repay and test your exit strategy before lending. Bridging on investment property is unregulated and sits outside those protections.
If you need a regulated bridge quickly, use a bridging loan broker that places these every week. Our bridging hub explains how we work and everything we arrange.
A regulated bridging loan, often called a residential bridging loan, is short-term finance secured against a residential property where you, or a family member, intend to live. Governed by MCOB rules under the Mortgage Credit Directive, it requires the lender to assess your ability to repay and review your exit strategy before approving the loan. It is not the same product as an unregulated bridge, and the distinction matters both in terms of available terms and the protections you receive.
FD Commercial arranges regulated bridging loans from £250,000 with no broker fee. A regulated bridging loan is a residential bridging loan secured on a home you or your family live in or will live in, and we arrange it for every owner-occupier use: chain break, buy before you sell, downsizing, probate and inheritance tax, divorce settlements, and renovation finance on your own home. Standard regulated bridges run for up to 12 months. Borrowers who meet the FCA high net worth definition (net income of £300,000 or more, or net assets of £3 million or more, including the equity in your home) can access regulated terms of up to 60 months, with no requirement to prove earned income. Most of the regulated cases we place are for people in their sixties and seventies whose wealth is their house.
What is a regulated bridging loan?
Regulated bridging applies when the security property is, or will be, occupied by you or a family member as a main residence or holiday home. The Mortgage Credit Directive brought bridging loans secured on residential owner-occupier property under FCA supervision in 2016. Before the MCD, all bridging was treated as unregulated. The distinction now determines which lenders can offer the product, what checks they must carry out, and what protections apply to you.
Ten lenders write regulated bridging, and our UK bridging lenders compared 2026 guide lists each one with its rate, maximum loan and loan to value.
The key test is occupancy, not property type. A property could be residential by description but unregulated as a bridge if you are purchasing it as a buy-to-let investment. The same property becomes regulated bridging if you intend to live in it. Many borrowers move between regulated and unregulated bridging depending on purpose. Getting this right at the outset determines which lenders we approach and what terms are available.
The Mortgage Credit Directive was implemented in the UK on 21 March 2016, bringing bridging loans secured against owner-occupier residential property under FCA supervision for the first time. Before that date, all bridging was treated as unregulated regardless of who occupied the property. The MCD introduced mandatory affordability assessment, exit strategy review, and a formal borrower reflection period that now apply to every regulated bridging loan arranged in the UK.
A regulated bridge on your own home can still be a fast bridging loan when the title is clean and the exit is a sale already agreed, and for London homes our bridging loans London page covers the prime-postcode loan to value and short-lease rules that apply.
What does FCA regulation mean for you?
Regulation under MCOB rules imposes specific obligations on regulated bridging lenders. Understanding what they require helps you prepare a stronger application and manage the process more efficiently.
Affordability assessment
The lender must assess whether you can afford the interest payments and whether the exit strategy is realistic. For bridging, affordability is less about income multiple and more about whether your repayment route is credible within the loan term. If your exit is sale of your existing home, the lender reviews its value, any outstanding mortgage, and the expected sale timeline. If your exit is refinancing, they assess whether you are likely to qualify for that refinance at the time it is needed.
Exit strategy review
You must provide a clear exit strategy with supporting evidence. Common exits are sale of an existing property, refinancing onto a standard residential mortgage, receipt of inheritance, or completion of equity release. Lenders assess whether the exit is realistic and likely to occur within 12 months. We work with you to document the exit clearly and present it in the way lenders assess most favourably.
Information obligations and reflection period
Regulated bridging lenders must provide you with detailed information about the loan, including all costs, rates, terms, and a summary of your rights, before you commit. In most cases you also have a reflection period of 14 days from receiving the formal offer. This gives you time to consider and seek independent advice. The reflection period can be waived with your explicit consent in time-critical situations such as auction purchases.
Regulated vs unregulated bridging: the key differences
The practical differences between regulated and unregulated bridging go beyond the legal definition. They affect rate, term, lender pool, and application complexity.
| Feature | Regulated bridging | Unregulated bridging |
|---|---|---|
| Property type | Residential owner-occupier or family home | Investment, commercial, or buy-to-let |
| Occupancy | Borrower or family member occupies as main residence or holiday home | No occupancy requirement |
| Regulation | Yes, MCOB rules apply | No |
| Affordability check | Required | Not required |
| Exit strategy | Required and formally assessed | Reviewed but not formally assessed |
| Maximum LTV | 70% to 75% | 65% to 75% (varies by asset type) |
| Maximum term | 12 months standard | Up to 24 months standard |
| Rates (indicative) | 0.55% to 0.75% per month | 0.55% to 1.25% per month |
| Interest options | Rolled-up or serviced | Rolled-up, serviced, or retained |
Regulated bridging typically prices more keenly than unregulated because residential owner-occupier property is well-understood security with liquid exit routes. The 12-month term limit is the main constraint. If you are purchasing an investment property, unregulated bridging is your only option. If you are buying a home to live in, regulated bridging offers better pricing and formal consumer protections.
How does chain break bridging work?
A chain break bridging loan is used when your buyer's mortgage is declined, their chain collapses, or they pull out close to exchange. You have a property under offer. Your buyer has disappeared, and the seller is no longer prepared to wait indefinitely. A bridging loan funds your purchase immediately, secured against your existing home. You complete the purchase, then sell your existing property in a normal market transaction. The bridge is repaid in full from those sale proceeds.
Chain break bridging is the cleanest regulated bridging use case. Lenders have clear precedent and efficient processes for this scenario. The exit strategy is straightforward: sale of your existing property in the open market. Rates on chain break cases are often at the lower end of the regulated bridging range because the exit is simple and the timelines are predictable.
According to Propertymark, fall-throughs affect one in three UK residential property transactions and cost buyers and sellers approximately £400 million a year. Chain break bridging exists specifically to prevent one party's failure from ending a purchase that is otherwise ready to proceed.
For more detail, see our dedicated page on chain break bridging loans.
Bridging loan for your main residence
A bridging loan for your main residence is, by definition, a regulated bridging loan. Any short-term loan secured against a property that you or a family member occupy, or intend to occupy, as a primary home falls under FCA regulation. This matters because it determines which lenders can offer the product, what checks they must carry out, and what consumer protections you are entitled to.
The most common reasons homeowners use a bridging loan on their main residence are: completing a purchase when their chain collapses, buying a new home before selling their existing one, funding renovation works on a property they plan to occupy, and managing the financial gap during separation or probate. In every case, the exit strategy centres on the eventual sale or refinance of the residential security, and lenders assess that exit rigorously before approving the loan.
FD Commercial arranges regulated bridging loans on main residences from £250,000, on a fee-free basis, across England, Scotland, and Wales.
Where the regulated bridge is £1 million or more, the lender list, pricing and term options change: our large bridging loans page sets out the £1 million to £250 million market, including the private bank route for high net worth borrowers.
Buy before you sell bridging
Buy before you sell bridging solves a timing problem rather than a chain emergency. You have found a property you want to buy immediately. Your existing property is on the market but has not yet sold. A bridging loan funds the new property purchase, secured against your existing home. Once your existing property sells, the bridge is repaid from those proceeds. You then refinance the new property onto a standard residential mortgage.
This approach requires confidence that your existing property will sell within 12 months at a price that clears the bridge. Lenders review the property's value, current market conditions, and any outstanding mortgage against it. We help you assess whether your existing property's equity and market position makes buy before you sell bridging practical.
For more detail, see our dedicated page on buy before you sell bridging loans.
Downsizing bridging loans
Downsizing bridging is used when you want to purchase a smaller property before your existing home has sold. It is structurally identical to buy before you sell bridging but with a specific characteristic: the existing property is typically larger, higher-value, and may be harder to sell quickly. Lenders look carefully at this when assessing the exit. A £1.5 million family home in a thin market is a different exit risk to a £450,000 terraced house in a busy suburb.
The bridge funds the purchase of the smaller property. Your existing property continues to be marketed and sold in normal time. Once it sells, the bridge is repaid from the sale proceeds, and you are left with only the smaller property either owned outright or with a modest mortgage. The freed equity is often the point: downsizing to release capital in retirement or to reduce outgoings.
Where the existing property has a mortgage outstanding, the bridging lender will review the net equity available. Most lenders require the loan-to-value across both properties to remain within comfortable limits. We model this at the outset to confirm whether the numbers work before approaching lenders.
Probate bridging
Probate bridging applies when you are inheriting a property and need short-term finance during the inheritance process. Common scenarios include clearing an outstanding mortgage on an inherited property so proceeds can be distributed to beneficiaries, buying out a co-beneficiary's share where one beneficiary wants to retain the property, or purchasing a new property while awaiting inheritance proceeds to arrive.
Clearing a mortgage on an inherited property
If the deceased's estate has limited liquid assets and probate is slow, the executor may need to clear an existing mortgage to distribute funds to beneficiaries. A bridging loan clears the outstanding mortgage. The bridge is repaid when the inherited property is sold or when estate assets are liquidated.
Buying out co-beneficiaries
Multiple beneficiaries inherit a property. One wants to keep it; others want their share of the equity paid out. A bridging loan funds the buyout of the other beneficiaries' shares. Once the buyout is complete, the property is refinanced onto a standard residential mortgage or the borrower's own longer-term financing.
Purchasing while awaiting inheritance
You expect an inheritance that will fund a new property purchase, but probate is taking longer than anticipated. A bridging loan funds the purchase now. Once the inheritance is received, the bridge is repaid and the property is refinanced onto a standard residential mortgage.
Divorce and separation bridging
Regulated bridging is routinely used in separation and divorce where one party needs to fund the buyout of the other's interest in the matrimonial home, or to purchase a new home before the financial settlement is finalised.
Buying out a spouse's share
In a separation, one party wants to retain the matrimonial home while the other wants their equity paid out. A bridging loan funds the buyout of the departing spouse's share. The loan is secured against the matrimonial home. Once the buyout is complete, the property is refinanced onto a standard residential mortgage and the bridge is repaid.
Purchasing a new home during proceedings
One party separates and needs to purchase a new home before the financial settlement is agreed. A bridging loan funds the new property, secured against the matrimonial home or the borrower's existing property. Once settlement proceeds are received or the matrimonial home sells, the bridge is repaid from those funds.
Exit strategy in family law contexts
Exit strategy documentation in divorce bridging is more complex than a standard chain break. Lenders require sight of the matrimonial settlement or financial order to understand the expected timeline and proceeds available. We liaise with your family law solicitor to ensure the exit strategy is clearly documented and the loan structure aligns with the settlement process.
Renovation bridging for your own home
If you are purchasing an uninhabitable or severely run-down residential property that you intend to occupy after renovation, regulated bridging can fund both the acquisition and the renovation works. This is sometimes called a regulated refurbishment bridge. The loan covers the purchase price plus works costs. Once renovation is complete and the property is habitable, you refinance onto a standard residential mortgage and the bridge is repaid.
The key requirement is that you intend to occupy the property as your main residence once works are complete. If the renovation extends beyond 12 months, you will need to discuss a term extension with the lender at the outset. We manage that conversation upfront where the timeline is uncertain.
What are regulated bridging loan rates, LTVs, and interest structures?
Rates, loan-to-value limits, and interest payment options on regulated bridging are broadly consistent across specialist lenders but vary depending on the use case, exit strategy, and borrower profile.
Rates
Regulated bridging rates currently range from 0.55% to 0.95% per month, with most published first charge products priced between 0.64% and 0.99% (October 2026 product guides). That represents approximately 6.6% to 9% annualised. With the Bank of England base rate held at 3.75% in September 2026 (next decision 5 November), regulated bridging rates sit approximately 3 to 5 percentage points above base, reflecting the short-term nature and specialist underwriting involved. Larger loans above £500,000 often access lower rates. Properties in prime locations and borrowers with clean exit strategies also tend to attract more competitive pricing.
Loan-to-value
Regulated bridging LTV typically sits at 70% to 75% of the property value. Some lenders extend to 80% LTV in strong cases, particularly on new build or prime residential security. We advise the maximum LTV achievable based on your specific security and circumstances rather than quoting a theoretical maximum.
Interest structures
Interest can be rolled up (added to the outstanding balance and repaid at redemption), serviced (paid monthly), or in some cases retained (deducted from drawdown). Rolled-up interest is the most common structure on regulated bridging because it avoids monthly cash outflow during the bridge period. Serviced interest is used where borrowers prefer to manage the balance more actively and have monthly income to support it.
Which UK lenders offer regulated bridging loans?
The main UK regulated bridging lenders in 2026 are Together, MT Finance, United Trust Bank, Precise, Glenhawk, West One, LendInvest and Alternative Bridging, with Market Harborough Building Society the one lender publishing a 60-month regulated term for high net worth borrowers. Each holds the FCA permissions required to lend on owner-occupied residential security, and each has a different appetite: some price keenest on chain break, others on probate, renovation, or larger loans.
The regulated market is much smaller than the unregulated one. Most bridging lenders never took on the compliance obligations of MCOB lending, so the pool of lenders who can fund a loan against your own home is a fraction of the wider market. Within that pool, criteria differ meaningfully. One lender will take a listed building at 70% LTV; another will not touch it. One is comfortable with a divorce settlement exit; another wants exchanged sale contracts before offer.
What we see across the regulated cases we arrange is that the difference between the right lender and the second-best lender on the same case is typically 0.1% to 0.15% per month and one to two weeks of process time. On a £400,000 bridge over nine months, that is £3,600 to £5,400 and the difference between completing inside the seller's deadline or losing the property. Lender selection is the job, not a formality.
| Lender | Regulated loan size | Max LTV (1st / 2nd charge) | Max term | Age and income |
|---|---|---|---|---|
| Together | £50k to £3m | 75% / yes | 12 months | Up to 80 at end of term, no cap if self-funded; no affordability assessment |
| MT Finance | £50k to £2.5m | 70% / 65% | 12 months | 21 to 85; no income requirement stated |
| United Trust Bank | £100k to £5m net | 75% / 70% | 12 months | No age limit; no income requirement |
| Precise | From £50k, no maximum | 75% / 70% | 12 months | 21 to 85; first time buyers excluded |
| Glenhawk | £250k to £3m | 75% / 70% | 12 months | Not published |
| West One | Not published | 70% / 65% | 12 months | No maximum age; no employment checks |
| LendInvest | £75k to £3m | 75% to £1m, 70% above | 12 months | Not published |
| Alternative Bridging | £250k to £4m | 75% / 65% | 12 months | Not published |
| Market Harborough BS | £100k to £5m | 70% / no | 60 months for HNW clients | No upper age limit; no proof of income |
Rates and lender criteria are subject to change. Figures correct at time of publication (lender product guides checked 7 October 2026). Always speak to your broker for up-to-date rates and lending criteria on your specific case.
The full comparison, including published rates, fees, interest options and the named uses each lender will consider, is in our guide to UK regulated bridging lenders compared. If you are retired or have little earned income, read bridging loans for retired and older borrowers first; it sets out which lenders publish no maximum age.
Can retired or older borrowers get a regulated bridging loan?
Yes. Age is rarely the barrier on a regulated bridge because the loan is underwritten on the security and the exit, not on earned income. United Trust Bank and West One publish no maximum age, Market Harborough Building Society has no upper age limit and asks for no proof of income, and Together will lend with no maximum age where the interest is self-funded. MT Finance and Precise lend to 85 at the end of the term.
The cases we see most are a couple in their seventies downsizing from a mortgage-free £1.5m to £3m home, a widow funding a care home deposit while the house sells, and executors who need to pay inheritance tax before the grant of probate. In every one of those the question is the same: is there a credible sale or refinance inside the term. Income barely features. What we tell clients is to get the house valued and on the market before the bridge draws, not after, because the lender will price the exit on evidence rather than intention.
Where the sale may take longer than a year, or the client does not want to be forced into a sale in a soft market, the 60-month regulated route for high net worth borrowers removes the deadline. The equity in your main home counts towards the £3 million net assets test, so most owners of a £3m home qualify on assets alone. Our guides on bridging for downsizing, bridging versus equity release, inheritance tax bridging loans and asset-rich, income-poor borrowers cover each scenario with worked numbers.
What documents do you need for a regulated bridging loan?
A regulated bridging application needs proof of identity and address, evidence of income, a mortgage statement for any existing property, details of the purchase, and evidence of your exit strategy. Because the loan is regulated, the lender must assess affordability, so the documentation is fuller than on an unregulated bridge.
The standard pack looks like this: photo ID and proof of address for each borrower; three months of bank statements; evidence of income (payslips, SA302s, or accounts if self-employed); the memorandum of sale or offer details for the purchase; a redemption statement or mortgage statement for the existing property; and exit evidence, which means an estate agent sales appraisal or exchanged contracts where the exit is sale, or a mortgage agreement in principle where the exit is refinance. Your solicitor's details are needed early, and choosing a conveyancer who has done bridging before saves a week or more.
Have the pack ready before terms are issued. The single biggest cause of a bridging case drifting past its deadline is not the lender; it is documents arriving one at a time over a fortnight.
How does the application process work?
Regulated bridging applications move faster than standard residential mortgages, but include the regulatory checks required under MCOB rules. Most straightforward cases complete within two to four weeks from initial enquiry.
Initial enquiry
We discuss your situation, property, exit strategy, and timing. We confirm whether regulated bridging is the right product and outline what to expect from lenders.
Terms in principle (24 to 48 hours)
We provide indicative terms from suitable lenders: loan amount, rate, LTV, and key conditions. You review and confirm whether to proceed to a formal application.
Formal application and underwriting
We submit the formal application with your documentation: property details, purchase contract or offer, details of your existing property if applicable, and exit strategy evidence. Affordability and exit strategy are assessed under MCOB rules.
Formal offer and reflection period
The lender issues a formal offer once underwriting is complete. You have a reflection period, typically 14 days, to consider the terms and seek independent advice. We explain all terms and answer any questions during this period.
Legal and completion (5 to 14 days)
Once you accept the offer, the lender's legal team drafts the loan agreement and charge. Your conveyancer reviews, exchanges documents, and completes the registration. Funds are drawn and your purchase completes.
Why use FD Commercial for regulated bridging?
FD Commercial is a specialist property finance broker, not a lender. We arrange regulated bridging loans from £250,000 across England, Scotland, and Wales. We charge no broker fees on regulated bridging. Our income comes from lender commission, not from you.
We have access to the full regulated bridging market, including lenders that do not accept direct applications. That matters because regulated bridging lenders vary significantly in their appetite for specific use cases. Some lenders excel on chain break. Others are stronger on probate or divorce. Matching the case to the right lender from the outset is what a specialist broker does, and it directly affects the rate, the speed, and whether the loan completes at all.
We have been arranging specialist property finance since 2013. Most regulated bridging cases we handle complete within two to four weeks of the initial call. Where speed is critical, such as a chain break with a two-week window or an auction purchase, we work to the tightest timelines the lender's process allows.
A couple were purchasing at £620,000. Their existing property was valued at £520,000 with no mortgage. Three days before exchange, their buyer's mortgage was declined. The seller gave them a two-week window. We arranged a regulated bridging loan of £310,000 (50% LTV against the existing property). The purchase completed within 10 working days of our initial call. Their existing property sold six weeks later and the bridge was repaid in full from those proceeds.
Frequently asked questions
What is a regulated bridging loan?
A regulated bridging loan is short-term finance secured against a residential property where you or a family member will live. It is governed by MCOB rules under the Mortgage Credit Directive, requiring the lender to assess affordability and exit strategy. Maximum term is typically 12 months.
What is the difference between regulated and unregulated bridging?
Regulated bridging applies when you or a family member will occupy the security property as your main residence or holiday home. Unregulated bridging covers investment property, buy-to-let, and commercial property. Regulated requires affordability assessment under MCOB rules; unregulated does not.
What are regulated bridging loan rates?
Regulated bridging rates typically range from 0.55% to 0.75% per month (indicative), depending on LTV, property, loan size, and borrower profile. Larger loans and strong exit strategies tend to attract more competitive pricing. All rates are subject to individual lender underwriting.
Which UK lenders offer regulated bridging loans?
The main UK regulated bridging lenders include Together, MT Finance, United Trust Bank, Precise, Glenhawk, and West One. The regulated market is far smaller than the unregulated one because lenders need specific FCA permissions to lend on owner-occupied property. Each lender has a different appetite by use case, LTV, and property type.
What documents do I need for a regulated bridging loan?
You need photo ID and proof of address, three months of bank statements, evidence of income, purchase details, a mortgage or redemption statement for any existing property, and exit strategy evidence such as an estate agent appraisal, exchanged contracts, or a mortgage agreement in principle. Having the full pack ready before terms are issued keeps the case on timeline.
What is the maximum LTV on a regulated bridging loan?
Maximum LTV on regulated bridging is typically 70% to 75%. Some lenders extend to 80% LTV on new build or prime residential property in strong cases. Conservative underwriting keeps most cases at 70% to 75%.
What is the maximum term on a regulated bridging loan?
Most regulated bridging lenders set a maximum term of 12 months, because the FCA defines a bridging loan as a loan of 12 months or less. There is no FCA cap on the term of a regulated facility, so a longer loan simply runs as a regulated mortgage contract. Market Harborough Building Society writes regulated terms of up to 60 months for borrowers meeting the FCA high net worth definition, and private banks will consider similar terms case by case.
Is there an age limit on a regulated bridging loan?
Several regulated lenders publish no maximum age, including United Trust Bank, West One and Market Harborough Building Society, and Together applies no maximum where the interest is self-funded. MT Finance and Precise lend to age 85 at the end of the term. Because the loan is repaid from a sale or refinance rather than from income, retired borrowers are placed routinely.
What exit strategies do regulated bridging lenders accept?
Common accepted exits include sale of an existing property, refinancing onto a standard residential mortgage, receipt of inheritance, or completion of equity release. Lenders assess whether the exit is realistic and likely within the loan term. The exit must be clearly documented at application.
How quickly can a regulated bridging loan complete?
Straightforward regulated bridging cases complete in 5 to 14 days. Terms in principle are available in 24 to 48 hours. Most cases we handle complete within two to four weeks of the initial call. The MCOB reflection period is included within that timeline.
Can I use regulated bridging for a chain break?
Yes. Chain break is the most common regulated bridging use case. A regulated bridge funds your purchase immediately when your buyer drops out, secured against your existing home. You sell your existing property in normal time and the bridge is repaid from those proceeds.
Can I get a regulated bridging loan for probate?
Yes. Regulated bridging is used in probate to clear outstanding mortgages on inherited property, buy out co-beneficiaries, or fund a purchase before inheritance proceeds arrive. The security property must be one you or your family intend to occupy.
Can I use regulated bridging during a divorce?
Yes. Regulated bridging funds buyouts in separation and divorce, or property purchases before the financial settlement is finalised. The property must be occupied, or intended to be occupied, by you as your main residence.
Does FD Commercial charge broker fees on regulated bridging?
No. FD Commercial arranges regulated bridging loans on a fee-free basis. We earn commission from lenders, not from borrowers. No broker fee is added to the loan or charged separately.
Can I use a bridging loan to downsize my home?
Yes. Downsizing bridging works the same way as buy before you sell bridging. The loan funds the purchase of your smaller property before your existing home sells. The bridge is repaid from the proceeds of the sale. Lenders assess the existing property's marketability and value carefully, particularly on higher-value homes in thinner markets.
Is a bridging loan on my main residence regulated?
Yes. Any bridging loan secured against a property that you or a family member occupy, or intend to occupy, as a main residence is classified as a regulated bridging loan under FCA rules. Regulation requires the lender to carry out an affordability assessment and exit strategy review before approving the loan.
Is FD Commercial authorised to arrange regulated bridging loans?
Yes. Regulated bridging can only be arranged through an authorised intermediary, and our authorisation details sit in the footer of every page and on the FCA register. We arrange regulated bridging from £250,000 across England, Scotland and Wales, with no broker fee.
All rates and figures shown are indicative only and subject to lender assessment, credit profile, and market conditions at the time of application. Rates may change without notice. Your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
Regulated bridging from £250,000. Chain break, buy before you sell, probate, divorce, renovation. No broker fees.
Call 03300 100315