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 rulesFCA-registered UK lender FRN 782472 (opens the FCA register in a new tab)
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.
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Bridging structure check
A £325,000 loan against a £500,000 property
65%
loan-to-value, against a 70% illustrative reference point
- Equity remaining
- £175,000
- Headroom to 70% LTV
- £25,000
Within a 70% illustrative LTV reference point.
A £325,000 loan against a £500,000 property is 65% loan-to-value; equity remaining £175,000.
Security risk: Your property may be repossessed if you do not keep up repayments on a loan secured against it.
Operator notesRegulated Unregulated Our loans
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.Cashbook Finance provides business bridging finance secured on business or investment property.
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.
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
Which suits you
Regulated or not, by situation.
| Your situation | Usually the better fit | Why |
|---|---|---|
| Buy-to-let, held as an investment | Unregulated business bridge | No one related lives there |
| Commercial or mixed-use property for business | Unregulated business bridge | Business purpose and use |
| Your own home, or a relative’s | Regulated bridge | FCA mortgage rules apply (not offered by us) |
| Part-occupied by family | Take advice before applying | Occupation can make it regulated |
Worked example
An unregulated business bridge.
A landlord borrows £227,500 against a £350,000 buy-to-let flat that nobody in the family lives in, repaid by a sale in month 9.
Because the property is an investment, not a home, the loan is a business bridge; the costs and the exit still need the same scrutiny.
| Property value | £350,000 |
|---|---|
| Gross loan (65% loan-to-value) | £227,500 |
| Arrangement fee, 1%, from the loan | £2,275 |
| Interest at 1% a month, rolled up, for 9 months | £20,475 |
| Repaid at exit (loan plus interest) | £247,975 |
| Cost before valuation and legal fees | £22,750 |
| If the exit is 3 months late | +£6,825 in interest |
Illustrative: interest at 1% a month, rolled up, and an arrangement fee of 1% of the loan. Valuation and legal costs are extra and quoted per case. Bridging finance is secured against property, which may be repossessed if repayments are not maintained.
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.
Do you offer regulated bridging loans?
No. We provide business bridging on investment and commercial property.
What makes a bridge regulated?
Generally, security on a property the borrower or a close family member lives in or intends to live in, as set out in the regulated mortgage contract rules.
Does borrowing through a company make it unregulated?
Often, but occupation still matters. Take advice if a family member will live in the property.
Are unregulated bridges riskier for borrowers?
They carry fewer conduct rules, so read the terms carefully and take independent advice.
Official sources
- Regulated Activities Order 2001, article 61 (regulated mortgage contracts) (opens in a new tab)legislation.gov.uk
- Financial Services Register: Cashbook Finance, FRN 782472 (opens in a new tab)FCA
Official guidance and legislation on the rules this page refers to. They explain the rules in general; take advice on your own position.
Lender view
A practical note from the lender.
BL
Bjorn Laku: commercial judgement
Bridging delays usually come from unclear security, weak exit evidence or legal details that should have been surfaced before the deadline became urgent.
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.