A home for the borrower
A bridge secured on property the borrower or a close family member lives in, or will live in, is generally a regulated mortgage contract.
Know the rules
Regulated vs unregulated bridging loans.
In the UK, a bridging loan is generally regulated (as a regulated mortgage contract) when it is secured on a property that the borrower, or a close family member, lives in or intends to live in as a home. Loans secured on investment or business property, taken for business purposes, are generally unregulated. Cashbook Finance provides business bridging finance secured on business or investment property.
Operator notes
The question that decides whether a bridge is regulated.
It turns on how the security property is used, not on the size of the loan.
An investment or business asset
Loans on buy-to-let, refurbishment or commercial property for business purposes are generally unregulated.
What Cashbook Finance provides
Business bridging finance secured on business or investment property.
Next step
Not sure which applies to your deal?
Tell us how the property is held and used, and we will tell you whether it falls within the business bridging finance we provide.
Practical context
The same discipline applies to every bridge.
Regulated or not, a bridge is short-term borrowing secured on property, and the exit - a sale or a refinance - must be credible from the start.
Regulated bridging carries FCA mortgage conduct rules, including affordability and advice requirements. Take advice on your own circumstances, particularly where a property is partly occupied or held through a company.
- Confirm how the property is and will be occupied
- Compare the full cost, not just the monthly rate
- Test the exit against realistic timings
Decision framework
Three points to clarify early.
Getting the classification right first avoids applying to the wrong type of lender.
Occupation
Will anyone related to the borrower live in the property?
Purpose
Is the borrowing for business or investment purposes?
Exit
How and when will the loan be repaid?
Illustrative guidance only; eligibility, pricing and terms are confirmed after review. Bridging finance is secured against property. Your property may be repossessed if you do not maintain repayments on a loan secured against it. Applicants should obtain independent legal, financial and tax advice where appropriate.