The right mortgage for you depends on many factors, including your budget, credit score, life stage, deposit size, the type of property you’re buying and
The right mortgage for you depends on many factors, including your budget, credit score, life stage, deposit size, the type of property you’re buying and
An unregulated bridging loan is a type of loan used to purchase a property that will not serve as the residence.
We secure the right unregulated bridging loan to suit your unique needs.
With over 500 five-star reviews, our expert mortgage and finance brokers provide top-tier service, ensuring you get the best short-term funding options for your project.
Our streamlined process makes securing a bridging loan simple and stress-free so you can move forward with your plans with confidence.
An unregulated bridging loan is a short-term finance option for buying property that won’t be the borrower’s main residence. Â
Typically used for refurbishing properties for resale, buy-to-let investments, or HMOs for rental, these loans are later refinanced with standard buy-to-let mortgages. Â
Popular for their flexibility and speed, unregulated bridging loans aren’t overseen by the Financial Conduct Authority (FCA), offering less protection but more freedom.Â
They’re ideal for expanding property portfolios, securing new properties before selling existing ones, or refurbishing properties for profit.Â
What Are The Benefits?
Unregulated bridging loans are versatile and can be used for a variety of purposes. They can be used for things such as refurbishment, development and investment.
Using an unregulated bridging loan can mean you’re able to borrow more from a lender.
Unlike other more traditional finance options like residential mortgages, lenders for unregulated bridging loans are usually less concerned with income and credit history. However, this does vary lender to lender and does depend on the loan itself.
With unregulated bridge loans, you may get an option to defer your monthly payments and pay it back in full at the end of the loan period.Â
If you’re buying a property at auction, an unregulated bridging loan can relieve the financial pressure a mortgage can’t. When you purchase a property at auction they typically require it to be paid within 28 days. If you can’t get a mortgage within that time a bridge loan can provide a great alternative. Â
What Are The Risks?
As a borrower, you will have less protection since the loan is unregulated. Lenders may not be required to act in your best interest. Â
These types of loans may be subject to higher interest rates than a typical loan such as a mortgage.
As the name suggested these types of bridging loans are not regulated by the FCA.Â
Make sure to check the fine print of your loan. Lenders may not be required to provide clear details on the terms of your loan. Make sure you speak to an adviser for advice before signing on the dotted line. Â
If you fail to repay the loan at the end of the term, you’re at risk of default, CCJ and liquidation (if you’re a company) Your property may also be repossessed by the lender.Â
You’ll need to figure out how much you want to borrow. The amount you can borrow will be dependent on a wide range of factors which your adviser can explain to you.
Your mortgage broker can provide expert advice regarding the market and unregulated bridging loan rates which can help you to achieve a suitable rate. Â
Your broker will compare the deals available and find the most suitable option for you.
Lenders will want to ensure you have a clear exit plan – one that illustrates how and when you’ll repay the loan. Your adviser and accountant can help with this.Â
Regulated bridging loans, overseen by the Financial Conduct Authority (FCA), ensure strict criteria, borrower protections, affordability checks, and clear complaint processes. In contrast, unregulated bridging loans lack such oversight, offering more lender flexibility but fewer borrower protections. These unregulated loans may be quicker and easier to obtain but often come with higher costs and greater risks.Â
Something not on the list? Get in touch with a member of our expert team who can advise if you qualify for an unregulated bridging loan. Â
Choosing a regulated bridging loan may be better if it’s secured against your home or a family member’s, as it offers more protection. Â
For commercial or investment needs, an unregulated loan is likely to be more suitable, providing greater flexibility, higher amounts, and faster processing.Â
At UKMC, our mortgage experts specialise in finding the best unregulated bridging loan deals for you. We work with a range of lenders to secure the most suitable terms and ensure you fully understand the costs and agreement conditions. We’ll also help you develop an exit strategy that meets the lender’s requirements. If we believe another type of funding might be a better fit for your needs, we’ll present alternative options so you can make a well-informed choice.Â
UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.Â
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.Â
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
You may be charged a fee for your advice. A typical fee is £495, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
Registered company number: 15825320
