Unregulated bridging is short term finance secured on property that is not your home. It is used by landlords, developers, investors and businesses to buy, refurbish or release equity quickly, and to bridge the gap until a sale or long term finance is in place.
These loans sit outside the FCA’s mortgage regime, so lenders focus on the property, the loan to value and the exit rather than on personal income. That is what makes them fast and flexible. It also means fewer statutory protections, which is why the right structure and a realistic exit matter so much.
| Situation | Usually | Why |
|---|---|---|
| Buying a buy to let to rent to tenants | Unregulated | Buying a buy to let to rent to tenants Unregulated Neither you nor a related person will live there .[1] |
| Borrowing through a limited company or SPV | Unregulated | The borrower is not an individual or trustee [1] |
| Buying commercial premises | Unregulated | Less than 40% of the property is a dwelling.[3] |
| Refurbishing a property to sell | Unregulated | The property is an investment, not your home. [1] |
| Buying land with or without planning | Unregulated | No dwelling is occupied by you or family .[1] |
| Letting the property to your daughter | Regulated | She is a related person, so the loan is regulated.[1] |
| Buying a home you will live in | Regulated | See our Regulated Bridging Loans page. |
| Measure | Q2 2026 |
|---|---|
| Share of bridging that was unregulated | 52% |
| Investment property purchases | 18% of all bridging (joint top reason) |
| Auction purchases | 14% |
| Heavy refurbishment | 10% |
| Business cash injection | 9% |
| Average loan to value / average completion time | 55% / 46 days |
| Situation | How the bridge works | Typical exit |
|---|---|---|
| Auction buy to let. You win a lot and must complete in 28 days. | Funds the purchase within the auction deadline. | Buy to let mortgage. |
| Heavy refurbishment. A tired house needs a new roof and rewiring. | Funds purchase and, with some lenders, the works in stages. | Sale, or refinance at the higher post works value. |
| Office to residential conversion. | Short term funding while planning and works complete. | Development exit loan or sale of units. |
| Portfolio landlord needs a deposit for the next purchase. | Releases equity from an existing rental property. | Remortgage or sale of a property. |
| Business cash injection for stock, a contract or a tax bill. | Secured on investment or commercial property. | Refinance or business cash flow. |
| Land purchase while planning is pending. | Secures the site before a competitor does. | Development finance or sale. |
| Factor | Why it matters |
|---|---|
| Exit strategy | The single most important factor. Lenders want a credible, evidenced route to repayment |
| Loan to value | Lower LTVs attract better terms. The Q2 2026 average was 55%. [3] |
| Property type and condition | Unusual or unmortgageable property narrows the lender panel. |
| Your experience | Refurbishment and development lenders look for a track record. |
| Borrower structure | Borrower structure Company borrowers are usually asked for personal guarantees from directors. |
| Regulated | Unregulated | |
|---|---|---|
| Typical borrower | Homeowners and families | Landlords, developers, companies |
| Property | Home of you or a related person | Investment, commercial, land |
| FCA mortgage rules. | Apply | Do not apply |
| Affordability check | Required under MCOB 11.6 | Focus on property and exit |
| Term | Twelve months or less [4] | Often 12 to 24 months |
Yes. Many investors buy through an SPV, and the loan will be unregulated.
Yes. Bridging is often used for exactly this, with a refinance once the work is done.
Pricing depends on the property, the LTV and the exit rather than on whether the loan is regulated.
MOST BUY TO LET AND COMMERCIAL BRIDGING LOANS ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY. YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS.
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] Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, Article 60C (exemption for credit exceeding £25,000 for business purposes).
[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 Glossary, “bridging loan”: handbook.fca.org.uk/handbook/glossary/G2949.html
