A regulated bridging loan is short term finance secured on a property that you, or a close family member, live in or plan to live in. Most people use it to buy their next home before their current one has sold, so a slow or broken chain does not cost them the property they want.
Because the loan is secured on a home, it falls under the Financial Conduct Authority’s mortgage rules. The lender has to check that the loan is affordable and that your plan for repaying it is realistic, and the advice you receive has to meet FCA standards.
A bridging loan is a regulated mortgage contract when all three of the following apply [1]:
The lender provides credit to an individual or to trustees.
The loan is secured by a mortgage on land in the UK.
At least 40% of that land is used, or is intended to be used, as or in connection with a dwelling by the borrower or by a related person.
A related person is your spouse or civil partner, a partner you live with as if married, or your parent, brother, sister, child, grandparent or grandchild [1]. In the FCA Handbook, a regulated bridging loan is a regulated mortgage contract with a term of twelve months or less [2].
| Measure | Q2 2026 | What it tells you |
|---|---|---|
| Share of bridging that was regulated | 48% (41% in Q1 2026) | Homeowners are using bridging more than at any time since 2022 [3]. |
| Loans taken to prevent a chain break | 18% of all bridging | Chain breaks were joint top reason for bridging .[3] |
| Average loan to value | 55% | Lenders typically want a solid equity cushion .[3] |
| Average time to complete | 46 days (53 days in Q1) | Faster than most standard purchases. [3] |
| Average term | Average term 12 months | In line with the FCA twelve month limit for regulated bridges . [2][3] |
| Scenario | How the bridge works | Typical exit |
|---|---|---|
| Chain break. Your buyer pulls out a week before exchange. | The bridge funds your purchase so you can proceed on time. | Sale of your existing home. |
| Downsizing. You want to buy a bungalow before selling the family home. | You buy first and move at your own pace, without a rushed sale. | Sale of the family home. |
| Auction purchase to live in. Completion is often due within 28 days. | Funds are ready within the auction deadline. | Residential mortgage or sale of your current home. |
| Home that is not yet mortgageable, for example no working kitchen or bathroom | The bridge covers the purchase while the property is made habitable. | Remortgage once the works are finished. |
| A home for a parent. You buy a flat for your mother to live in. | Regulated because a related person will live there .[1] | Residential mortgage or sale. |
| Flat above a shop where you will live and the flat is at least 40% of the property. | Regulated because of the 40% dwelling test .[1] | Mortgage once trading and occupancy are settled. |
We compare terms across a wide panel of bridging lenders, including:
The market average was 46 days in Q2 2026 [3]. Straightforward cases with a clear exit can complete sooner.
Yes. The bridge can sit behind your existing mortgage as a second charge. Second charge loans made up 22% of bridging in Q2 2026 [3].
We plan for this at the start. Options can include reducing the asking price, extending the term or refinancing onto a longer term mortgage, subject to lender approval.
Often not in cash. The equity in your current home can be used as additional security.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
[1] Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, Article 61(3)(a); FCA Handbook PERG 4.4 “What is a regulated mortgage contract?”: handbook.fca.org.uk/handbook/perg4/perg4s4
[2] FCA Handbook Glossary, “bridging loan”: handbook.fca.org.uk/handbook/glossary/G2949.html
[3] Bridging Trends Q2 2026 (published 27 August 2026; data from contributing brokers, so it reflects a sample of the market, not the whole market). Reported by IFA Magazine: ifamagazine.com/borrowers-maximise-bridgings-versatility
[4] FCA Handbook MCOB 11.6 Responsible lending and financing: handbook.fca.org.uk/handbook/MCOB/11/6.html
[5] FCA Handbook PRIN 2A Consumer Duty: handbook.fca.org.uk/handbook/PRIN/2A
