Regulated Bridging Loans: when the security is your own home
If the loan is secured on the home you live in (or plan to), it's FCA-regulated: more protection, more paperwork, a shorter lender list. Chain breaks and downsizing live here, so this page matters to more people than any other.
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Regulated vs unregulated: the actual difference
Regulated means FCA consumer protections: affordability rules, advice requirements, a 12-month maximum term, no rolling extensions. Unregulated (investment property) is faster and more flexible but carries fewer protections. You don't choose, the property use decides.
"People hear "unregulated" and think dodgy. It just means business lending. What you should actually check is the broker: we're FCA authorised for both."
Chain breaks: the classic regulated bridge
Your buyer pulls out; the house you're buying doesn't wait. A regulated bridge secures the new home now, repaid when your old home sells.
We're writing this one up: a chain break rescued on a family home.
See the case studies we have published →Downsizing with a bridge
This one is for people selling a big family home to buy somewhere smaller. A bridge lets you buy the new home first and move in your own time, so you only move once. The old house then goes on the market empty, which usually shows better and often sells for more. Interest rolls up while you sell, so there's nothing to pay month to month, and the loan clears when the family home completes.
Your questions
What is a regulated bridging loan?
One secured on the home you live in, or one you're about to live in. It comes under FCA rules, which means mandatory advice, a 12 month maximum term and extra consumer protections. Loans on investment property sit outside that, which is all unregulated means.
Are bridging loans safe?
The regulated kind carries protections similar to a residential mortgage. But the real safety question isn't the lender, it's the plan. A bridge with a solid exit is a safe tool. A bridge with a hopeful exit is how the horror stories start, and that's exactly what we stress-test before you borrow a penny.
Can I get a bridging loan on my own home?
Yes, that's precisely what regulated bridging is for. Chain breaks, downsizing, buying before you sell. The loan is secured on your home, runs up to 12 months and clears when your sale completes.
How does a chain break bridging loan work?
Your buyer pulls out but you don't want to lose the home you're buying. The bridge is secured on your current home, the new one or both. You complete the purchase, move in, then repay when your old home sells, with up to 12 months to get that sale done properly.
What happens if my house does not sell in time?
Talk to us early. If the sale is progressing, lenders can usually extend or we refinance. We'll not dress it up though, the loan is secured on your home, which is why we never set up a bridge without a realistic sale price and a cushion built into the term.
Do I make monthly payments on a regulated bridge?
Usually not. Interest is retained or rolled up, then settled when the property sells. Nothing to find each month while you're mid-move.
Can a second charge bridging loan be regulated?
Yes. If it sits behind the mortgage on your own home, a second charge bridge is regulated too. We arrange those, there's a whole page on second charge bridging.
Got a deal like this on your desk?
Tell us the numbers and we'll tell you honestly what's achievable.
Prefer to put it in writing? Email support@bridgingfinancebroker.co.uk