# Regulated vs Unregulated Bridging Loans Source: https://www.cashbookfinance.co.uk/insights/regulated-vs-unregulated-bridging-loans Last updated: 2026-10-26 Author: Bjorn Laku, Director & Chief Marketing Officer (https://www.bjornlaku.com/) Publisher: Cashbook Finance Limited > When a bridging loan is FCA-regulated and when it is not: the home-occupation test, what changes for borrowers, and which loans Cashbook provides. FCA-registered UK lender FRN 782472 ## 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**. Written and reviewed by [Bjorn Laku](https://www.cashbookfinance.co.uk/bjorn-laku), Director & CMO. LTV · Property → short-term capital Illustration Bridging structure check A £325,000 loan against a £500,000 property Within reference **65%** loan-to-value, against a 70% illustrative reference point - **Equity remaining** £175,000 - **Headroom to 70% LTV** £25,000 Estimated property value · £500,000 Requested gross loan · £325,000 Within a 70% illustrative LTV reference point. **Security risk:** Your property may be repossessed if you do not keep up repayments on a loan secured against it. Check eligibility · Costs and exit **£30m+** funded · **100+** UK businesses since 2019 · London SE1 - FCA **782472** - ICO **ZB545200** - Companies House **10723098** ### 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. Regulated #### 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. Unregulated #### An investment or business asset Loans on buy-to-let, refurbishment or commercial property for business purposes are generally unregulated. Our loans #### What Cashbook Finance provides Business bridging finance secured on business or investment property. Check eligibility · About 2–3 minutes, no credit search. ### 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. ### 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 Check eligibility · About 2–3 minutes, no credit search. ### 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. Check eligibility · Talk it through with a director | 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](https://www.cashbookfinance.co.uk/insights/bridging-finance-glossary#term-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. ### 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. **Related guidance:** [Bridging finance](https://www.cashbookfinance.co.uk/bridging-finance) · [Pricing & decisions](https://www.cashbookfinance.co.uk/pricing-decisions) · [Eligibility](https://www.cashbookfinance.co.uk/eligibility) · [Case studies](https://www.cashbookfinance.co.uk/case-studies) Quick answers ### Common questions. Check eligibility · All questions **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. Can’t see your question? Talk it through with a director #### Official sources - Regulated Activities Order 2001, article 61 (regulated mortgage contracts) legislation.gov.uk - Financial Services Register: Cashbook Finance, FRN 782472 · FCA Official guidance and legislation on the rules this page refers to. They explain the rules in general; take advice on your own position. Check eligibility · About 2–3 minutes, no credit search. ### A practical note from the lender. **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. ### More guides on bridging finance - [Refurbishment bridging finance](https://www.cashbookfinance.co.uk/insights/refurbishment-bridging-finance) - [VAT bridging loans](https://www.cashbookfinance.co.uk/insights/vat-bridging-loans) - [What slows down bridging completion](https://www.cashbookfinance.co.uk/insights/what-slows-down-bridging-completion) - [Bridging loans in London](https://www.cashbookfinance.co.uk/bridging-loans-london) - [Auction bridging finance](https://www.cashbookfinance.co.uk/insights/auction-bridging-finance) - [Bridging finance exit strategies](https://www.cashbookfinance.co.uk/insights/bridging-finance-exit-strategy-guide) --- Cashbook Finance. Cashbook Finance Limited is registered with the Financial Conduct Authority under Firm Reference Number 782472. Company number 10723098. Registered office: Cumberland House, 24–28 Baxter Avenue, Southend-on-Sea, Essex SS2 6HZ. Registered with the Information Commissioner’s Office under reference ZB545200. All finance is subject to eligibility, satisfactory due diligence, credit approval and agreed terms. Invoice finance, trade finance and bridging finance may not be suitable for every business. The availability, structure, amount, pricing, fees, security requirements and completion timescales of any facility will depend on the applicant’s circumstances, the quality of the supporting evidence provided and our assessment of the proposed transaction. Any figures, examples, rates or timescales shown on this website are for illustrative purposes only and do not constitute an offer, commitment or guarantee of finance. Terms and conditions apply. 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.