A regulated bridging loan is short-term finance secured against a residential property that you or your immediate family live in or intend to live in. Because your home is involved, the loan falls under the supervision of the Financial Conduct Authority, giving you consumer protections that unregulated bridging loans do not offer. Anyone can apply for a regulated bridging loan, either as an individual or through a limited company, provided the security property meets the residential occupation criteria.
Fox Davidson arranges regulated bridging loans for UK homeowners from £250,000. We are an FCA-authorised bridging loan broker, fee-free, and have been arranging residential and specialist finance from our Bristol offices since 2013. We work with a panel of specialist regulated bridging lenders. Most of whom do not deal directly with the public and manage the entire process on your behalf from initial enquiry through to redemption.
This guide covers everything you need to know about regulated bridging loans in 2026: what they are, when they make sense, what they cost, how the application process works, and what to do if things do not go to plan.
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What Is a Regulated Bridging Loan?
A regulated bridging loan is short-term finance secured against a residential property where you or an immediate family member currently live, have previously lived, or intend to live in the future. Unlike a traditional mortgage, which is long-term finance designed for ongoing homeownership. A regulated bridging loan is always a temporary solution. The expectation from day one is that you will repay the loan within an agreed timeframe through a clearly defined exit route.
Regulated bridging finance is overseen by the Financial Conduct Authority under the Mortgage Credit Directive. This means lenders must conduct affordability and suitability assessments, provide standardised cost disclosures, and treat you fairly throughout the process. You also have access to the Financial Ombudsman Service if things go wrong. This is a protection that unregulated bridging loans do not carry.
Regulated bridging loans are generally more expensive than traditional mortgages due to their short-term nature and the speed at which they are processed. However, that speed and flexibility is precisely their value. They solve problems that a standard residential mortgage cannot address within the required timeframe.
Fox Davidson is authorised and regulated by the Financial Conduct Authority. When we arrange a regulated bridging loan, we conduct a full fact-find, assess suitability, and explain all costs and risks clearly before you commit to anything.
What Makes a Bridging Loan Regulated?
The distinction between regulated and unregulated bridging loans is determined entirely by how the security property is used, not the loan size, the lender, or the purpose of the funds.
Under FCA rules, a bridging loan must be regulated if:
- The property used as security is your current main residence
- You or an immediate family member intend to live in the property in the future
- You or an immediate family member have previously lived in the property
- At least 40% of the property is used as a residential dwelling by the borrower or their family
This applies regardless of what you plan to do with the loan proceeds. Even if you are raising capital against your home for business purposes, the loan must be regulated because the security is your residence.
By contrast, a bridging loan is unregulated when secured against a property used purely for investment or business, such as buy to let property, an HMO, commercial premises, or a development site, where neither the borrower nor their family lives or intends to live. Unregulated bridging loans can have terms extending up to 24 months in some cases, whereas regulated bridging is typically capped at 12 months.
Only FCA-authorised firms can arrange regulated bridging finance. There are significantly fewer regulated bridging lenders in the UK market than unregulated lenders. We estimate only around one in twelve bridging lenders is fully FCA-regulated, which is one reason why working with a specialist regulated bridging loan broker matters.
When Does a Regulated Bridging Loan Make Sense?
Regulated bridging finance solves a specific problem: you need to move quickly on a property transaction, but your permanent funds are not yet available. The most common situations where UK homeowners use regulated bridging loans in 2026 are:
Buying a New Home Before Selling Your Current One
You have found the property you want to buy but your existing home has not yet sold. Rather than lose the purchase, or accept a lower offer to speed up your own sale, a regulated bridging loan lets you complete on the new property now, using your current home as security. When your existing property sells, you repay the bridge from the sale proceeds. See our dedicated guide to regulated bridging to buy before you sell.
Breaking a Property Chain
Your buyer has pulled out, or delays in their chain are threatening your onward purchase. A regulated bridging loan steps in to fund your purchase using your existing home as security, breaking your dependence on the chain completing. You proceed with your move, then repay the bridge when your property sells. See our guide to regulated bridging for chain breaks.
Downsizing in Later Life
You want to purchase a smaller property but want to sell your current home in your own time rather than rushing a sale to fund the purchase. A regulated bridging loan funds the new purchase now, secured against your existing home. You move at your own pace, then repay the bridge when your sale completes. See our guide to regulated bridging for downsizing.
Auction Purchases of Residential Property
You have won a lot at auction and have 28 days to complete. A standard residential mortgage cannot meet that deadline reliably. A regulated bridging loan can typically complete in two to four weeks, giving you the funds to complete your auction purchase on time. You then arrange a standard mortgage once in situ.
Buying a Property That Needs Work Before It Can Be Mortgaged
Some properties fail standard mortgage criteria at purchase, including no functioning kitchen, significant damp, structural issues, or a very low EPC rating. A regulated bridging loan funds the purchase and renovation works. Once the property is in habitable condition and meets standard residential mortgage lender criteria, you refinance onto a long-term mortgage to repay the bridge.
Divorce or Separation
You need to buy out a partner’s share of the family home, or purchase a new property quickly while financial arrangements are finalised. A regulated bridging loan provides capital at speed, with a remortgage or property sale as the exit once proceedings conclude. See our guide to regulated bridging for divorce and separation.
Raising Short-Term Capital Against Your Home
You have equity in your home and need to access capital quickly, to pay a tax liability, fund a specific opportunity, or cover an urgent cost. Provided a clear exit route exists (typically a remortgage or property sale), a regulated bridging loan can release equity within weeks where a traditional mortgage remortgage might take months.
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Regulated Bridging Loan Rates and Costs in 2026
Regulated bridging loans are more expensive than long-term residential mortgages due to their short-term nature and the speed at which they are processed. Bridging loan interest rates tend to be high, often between 0.5% and 2% per month, and are typically calculated on a monthly basis rather than annually. Most regulated bridging loans fall in the lower end of that range. Standard residential cases typically price between 0.55% and 0.90% per month in 2026.
In addition to interest, bridging loans typically include additional fees such as arrangement fees, valuation fees, and legal costs. Understanding the full cost picture before you commit is essential, and Fox Davidson always provides a written cost illustration at the outset.
Interest Rates by Loan Type
| Loan Type | Typical Monthly Rate (2026) | Notes |
|---|---|---|
| First charge, standard residential, up to 60% LTV | 0.55% – 0.70% | Best rates for strong cases with low LTV |
| First charge, standard residential, up to 75% LTV | 0.65% – 0.85% | Most common regulated structure |
| Second charge regulated bridging | 0.75% – 0.95% | Higher due to secondary security position |
| Adverse credit or non-standard property | 0.85% – 1.10% | Case specific, lender dependent |
All rates are indicative and subject to individual lender criteria, property condition, exit strategy strength, and borrower profile. We will always confirm the actual rate in writing before you proceed.
Additional Costs and Fees
Beyond interest, the overall cost of a regulated bridging loan includes several other components. Understanding these upfront avoids surprises later.
| Cost | Typical Range | Notes |
|---|---|---|
| Arrangement fees | 1% – 2% of loan amount | Charged by lender, often added to loan |
| Fox Davidson broker fees | £0 | We are fee-free, paid by the lender on completion |
| Valuation fees | £500 – £2,000+ | Depends on property value and complexity |
| Legal fees (your solicitor) | £1,500 – £3,000+ | Varies by solicitor and case complexity |
| Legal fees (lender’s solicitor) | £800 – £1,500+ | Borrower typically pays lender’s legal costs |
| Exit fee | 0% – 1% | Some regulated lenders charge, many do not |
How Interest Is Structured
Bridging loans can be structured with flexible repayment options that allow borrowers to manage cash flow more effectively during the term. The three main interest structures are:
- Rolled-up interest: Interest accrues monthly and is added to the loan balance. Nothing is paid during the term. The full amount including all accrued interest is repaid when the loan redeems. This is the most common structure for regulated bridging as it avoids monthly outgoings while you are also servicing a mortgage.
- Retained interest: Interest for the full agreed term is calculated upfront and deducted from the gross loan advance. You receive a lower net loan amount but make no monthly interest payments during the term. If you repay early, the unused interest is returned to you. This is an important benefit if your property sells faster than expected.
- Serviced (monthly) interest payments: You make monthly payments throughout the term, reducing the total cost if your cash flow allows. Less common for regulated bridging but available from some lenders.
Illustrative Cost Example
| Item | Figures |
|---|---|
| Existing home value | £850,000 |
| Existing mortgage balance | £150,000 |
| Net equity | £700,000 |
| New property purchase price | £600,000 |
| Bridging loan required | £450,000 |
| LTV against existing home | 53%, well within 75% maximum |
| Monthly interest rate | 0.65% |
| Monthly interest cost | £2,925 |
| Total interest (5 months) | £14,625 |
| Arrangement fees (1.5%) | £6,750 |
| Valuation and legal fees (est.) | £4,000 |
| Total estimated cost | ~£25,375 |
In this example the homeowner secures their new property and avoids losing the purchase. Their existing home sells five months later and the bridge is repaid in full. It is important to repay the bridging loan before it expires to avoid paying expensive default fees and penalties, which is why realistic planning of your exit timeline matters from the outset.
How Much Can You Borrow on a Regulated Bridging Loan?
Fox Davidson arranges regulated bridging loans from £250,000. The maximum loan amount depends on the value of the security property and the equity available. Lenders typically offer up to 70–75% loan-to-value for first charges on regulated bridging loans. Critically, the maximum loan including all interest and fees is normally limited to 75% LTV, meaning the gross loan at the end of the term, not just at the start, must not exceed this threshold. This is an important distinction when calculating how much you can borrow on a rolled-up interest structure over a longer term.
| Property Value | Maximum LTV | Maximum Loan (First Charge) |
|---|---|---|
| £400,000 | 75% | £300,000 |
| £600,000 | 75% | £450,000 |
| £1,000,000 | 75% | £750,000 |
| £2,000,000 | 70% | £1,400,000 |
| £5,000,000+ | 65% – 70% | Case specific |
Where an existing mortgage is in place, the maximum loan is calculated against net equity after the mortgage balance is deducted. For first charge loans the existing mortgage must be cleared from the bridging advance. For second charge bridging loans the existing mortgage remains in place and the bridge sits behind it, though maximum LTV is lower as a result. See our dedicated guide to second charge regulated bridging loans.
For high value cases, additional security, such as equity in a second property, which can increase the total facility or reduce the effective LTV on the primary security. Fox Davidson regularly structures these cross-charge arrangements for clients with equity across multiple properties.
First Charge vs Second Charge Regulated Bridging
Regulated bridging loans are available as either first or second charges on the security property. The right structure depends on whether you have an existing mortgage and whether you want to preserve it.
| Feature | First Charge Bridging Loan | Second Charge Bridging Loan |
|---|---|---|
| When used | No existing mortgage, or existing mortgage being cleared | Existing mortgage stays in place |
| Typical max LTV (2026) | 70% – 75% | 60% – 65% combined with existing mortgage |
| Interest rates | Lower: lender has first claim on property | Slightly higher: secondary security position |
| Main advantage | Higher loan amount, lower rates, simpler structure | Existing mortgage rate preserved, no early repayment charges triggered |
| Main consideration | Existing mortgage must be cleared or included | Lower maximum loan, requires first charge lender consent |
Open vs Closed Bridging Loans
When you get a bridging loan, it will be structured as either an open or a closed bridge. Understanding the difference matters for both pricing and lender choice.
Closed bridging loans have a fixed repayment date agreed at the outset. They are used when there is certainty around the exit. For example, you have exchanged contracts on your property sale and have a confirmed completion date. Closed bridging loans typically attract slightly better interest rates because the lender’s risk is lower and the timeline is defined.
Open bridging loans do not have a fixed repayment date. They are used when the exit is planned but the exact date is uncertain. For example, your property is on the market but not yet sold. Open bridges are more common for regulated homeowner transactions. Lenders will expect regular updates on the exit progress, including marketing reports, viewer feedback, and offer status, and will want to know you are actively working toward redemption.
For most regulated homeowner bridging transactions, an open bridge is the appropriate structure. The exit is sale of the existing property, which will happen within the term but on a date that cannot be confirmed precisely at the outset.
Exit Strategies: How Will You Repay the Bridge?
A viable exit route is a must on all bridging loan applications. Without one, no regulated bridging lender will proceed. The exit strategy is the single most important factor in both approval and pricing. Lenders want confidence that you can repay the full loan amount within the agreed term.
There are three main exit routes for regulated bridging finance:
1. Sale of Property
The most common exit for homeowner regulated bridging. The existing home or another property is sold, and the net proceeds repay the bridge in full. Lenders will want evidence that the property is either already on the market or will be listed promptly, and that the asking price is realistic based on an independent valuation. Properties should be priced to sell within the bridge term, not optimistically priced in hope of achieving an above-market result.
2. Refinance onto a Residential Mortgage
The bridge is repaid by refinancing onto a standard residential mortgage or remortgage. This is common where the property needed work before it could qualify for standard mortgage lending, or where the borrower needed to move quickly and is now in a position to arrange long-term finance. Lenders will want to see a mortgage agreement in principle confirming the refinance is achievable, ideally before the bridge is agreed.
3. Cash Redemption
The loan is repaid from a confirmed, identifiable cash sum that will become available during the term, such as a pension lump sum, an inheritance in probate, a business sale, or vested shares. For cash redemption exits, the client will need to evidence that a definite cash sum will be made available during the term of the loan, substantial enough to redeem the loan in full including all accrued interest and fees. The source and timing must be evidenced clearly.
What Happens If the Exit Cannot Be Achieved in Time?
If your exit cannot be achieved within the agreed timescales, it is important to give as much notice to your existing lender as possible. Do not wait until the loan expires. Most regulated bridging lenders would rather work with you to find a solution than move to enforcement. Options include a term extension (subject to a fee and continued interest), refinancing onto a new bridge with a different lender, or adjusting the sale strategy. For example, reducing the asking price to achieve a faster sale.
It is important to repay the bridging loan before it expires to avoid paying expensive default fees and penalties. Rebridging to another lender is typically more expensive than extending with the existing lender because it signals that the client was not able to exit the bridge within the original loan term, which increases perceived risk and therefore pricing. Planning conservatively from the outset, allowing more time than you think you need, is the most effective risk mitigation.
The Application Process: How Regulated Bridging Works Step by Step
The application process for a regulated bridging loan with Fox Davidson is structured but straightforward. We handle the complexity, coordinating between lenders, valuers and solicitors, so you can focus on your property transaction.
Step 1: Initial Consultation
We discuss your situation in detail: the property, your timescales, your exit strategy, and any complexities. For Fox Davidson clients, this is always a dedicated one-to-one conversation with your broker, not a call centre. We will tell you within the first conversation whether regulated bridging is the right option for your circumstances.
Step 2: Decision in Principle
We approach suitable lenders from our specialist lenders panel and obtain indicative terms. You receive a clear picture of the interest rate, arrangement fees, LTV, and total estimated cost before committing to anything. For urgent situations this can be completed within hours.
Step 3: Formal Application
We submit a full application to the chosen lender with supporting documentation. Because we know each lender’s lending criteria in detail, we present your case effectively from the outset, reducing the risk of delays or conditions being raised later.
Step 4: Valuation
The lender instructs an independent RICS-qualified surveyor to value the security property. Valuation fees are payable at this stage. Standard valuations typically complete within five to seven working days.
Step 5: Formal Offer
Once satisfied with the valuation and application, the lender issues a formal loan offer. Under FCA rules, this must include a European Standard Information Sheet clearly setting out the interest rate, loan amount, total overall cost, repayment terms and any conditions.
Step 6: Legal Work and Legal Process
Your solicitor and the lender’s solicitor carry out the legal process, covering title checks, searches, and charge registration documentation. Legal fees are payable on both sides. We coordinate communications proactively and keep all parties on track toward your target completion date.
Step 7: Completion and Drawdown
Once all legal conditions are met, funds are released. Regulated bridging loans arranged through Fox Davidson typically complete in two to four weeks from application for straightforward cases.
Step 8: Exit and Redemption
When your exit event occurs when your property sale completes, your remortgage funds, or your cash sum arrives, the bridge is repaid in full including all accrued interest. Most regulated bridging lenders allow early repayment without penalty, meaning if your property sells faster than planned, you save on interest costs and any unused retained interest is returned to you.
Regulated vs Unregulated Bridging Loans: Key Differences
Understanding the distinction matters, not just because it determines which lenders you can access, but because regulated bridging finance carries consumer protections that unregulated bridging loans do not.
| Feature | Regulated Bridging | Unregulated Bridging |
|---|---|---|
| Security property | Borrower or family member lives there | Investment or commercial: no borrower occupation |
| FCA regulation | Yes: full consumer protections apply | No: lender-set criteria only |
| Maximum term | Usually 12 months | Up to 24 months in some cases |
| Affordability assessment | Required by FCA rules | Not required, exit strategy focused |
| Mandatory advice | Yes: must use FCA-authorised firm | Not required, though advisable |
| Financial Ombudsman access | Yes | No |
| Open and closed options | Both available | Both available, more flexibility on terms |
| Typical interest rates (2026) | From 0.55% per month | From 0.60% per month |
| Lender market | Fewer lenders, more specialist | Wider lender market available |
Fox Davidson arranges both regulated and unregulated bridging loans. Where your circumstances sit on the boundary, for example a property that is partly residential and partly used for other purposes. We assess the position carefully and ensure the loan is correctly classified from the outset.
Eligibility: Who Can Get a Regulated Bridging Loan?
Anyone can apply for a regulated bridging loan, either as an individual or through a limited company, provided the security property meets the residential occupation criteria. Regulated bridging lenders in 2026 are generally more flexible than high street mortgage lenders. The primary considerations are the property used as security, the available equity, and the credibility of your exit route.
Property Criteria
- UK residential property (England, Wales or Scotland, though lender criteria vary)
- Borrower or immediate family member currently occupies, intends to occupy, or has previously occupied the security property
- At least 40% of the property used as residential accommodation
- Standard construction preferred. Non-standard property is considered by specialist lenders case by case
- Properties in poor condition or requiring significant work are accepted by most regulated bridging lenders provided the exit strategy accounts for this
Borrower Criteria
- Minimum age 18. Most regulated lenders have no hard maximum age, making bridging particularly accessible for older borrowers downsizing in retirement
- UK residency generally required. Some lenders will consider foreign nationals with UK residential security
- Employed, self-employed, company directors, contractors, and retirees are all eligible. Regulated lenders focus primarily on exit strategy and security rather than income
- Credit history is considered but adverse credit does not automatically disqualify. Lenders assess each case on its merits
Exit Route Requirements
A viable exit route is a must on all bridging loan applications. The most common regulated bridging exit routes are sale of the existing property, remortgage onto a standard residential mortgage, and cash redemption from a confirmed source. Evidence of your planned exit, such as bank statements showing available funds, a mortgage agreement in principle, or an agreed property sale, all of which strengthen your application and typically improves the terms available.
Adverse Credit and Regulated Bridging Loans
A strong credit history helps but is not essential for regulated bridging. Because most regulated bridges are repaid from a property sale or refinance rather than ongoing income, the affordability assessment focuses primarily on the security property and exit route rather than your credit score alone.
Historical CCJs, defaults, mortgage arrears, or missed payments may be acceptable depending on the nature of the adverse, how long ago it occurred, and your current financial position. Regulated bridging lenders that specialise in adverse credit typically work at lower LTVs (60–65%) and higher interest rates to reflect the additional risk. Approval is still possible where the exit strategy is strong and the equity position is sufficient.
Fox Davidson will assess your credit history at the outset and be straightforward about lender appetite before any application is submitted or valuation fees are incurred.
Case Study: Regulated Bridging to Break a Property Chain
A professional couple based near Bath came to Fox Davidson after their buyer withdrew three weeks before exchange. They had already exchanged on their onward purchase and faced losing their £25,000 deposit and the property itself.
Their existing home was valued at £975,000 with a £185,000 repayment mortgage outstanding. They needed £650,000 to complete their purchase and cover transaction costs.
Fox Davidson arranged a regulated first charge bridging loan of £650,000 at 66.7% LTV secured on their existing home. The existing mortgage was cleared from the advance as part of the facility. The rate was 0.68% per month, with interest rolled up. The loan amount including rolled-up interest remained within the 75% LTV ceiling throughout the term.
The loan completed in 19 working days. The couple moved into their new home. Their existing property was relisted and sold four months later. The bridge was repaid in full from the sale proceeds with no early repayment charges. Total interest cost for four months was approximately £17,680, considerably less than the cost of losing their purchase and deposit.
This is a representative example. All figures are illustrative. Individual cases will vary based on lender criteria, property value, and borrower circumstances.
Large Regulated Bridging Loans for High Value Homeowners
Fox Davidson has extensive experience arranging large regulated bridging loans for high net worth clients purchasing high value residential property. Our minimum loan size is £250,000 and we regularly arrange regulated bridging from £1 million to £5 million and beyond through specialist lenders and private banks.
For large loan regulated bridging, additional options become available, including extended loan terms beyond the standard 12 months through specialist lenders, lending against multiple properties to maximise the available facility, and private bank structures offering bespoke pricing for ultra-high-net-worth borrowers.
For more information on our work with high value clients, see our high net worth mortgage broker page.
How Fox Davidson Arranges Your Regulated Bridging Loan
Fox Davidson has been arranging residential and specialist finance for clients since 2013. We are based in Bristol with clients across England, Wales and Scotland. Every client has a dedicated broker, paraplanner and case manager. You will not be passed around a call centre or have to repeat yourself to different people at different stages of the process.
As a specialist bridging loan broker, our approach is to understand your situation thoroughly before recommending anything. We identify the most suitable lenders from our panel, negotiate the best available terms, and manage the application process from start to finish. We do not recommend a regulated bridging loan where we believe a simpler or cheaper alternative, such as a further advance from your existing lender, or a standard remortgage, would serve you better.
Because we work with a panel of specialist bridging lenders rather than a single provider, we can match complex circumstances, including non-standard property, adverse credit, and tight timescales, with lenders who are genuinely comfortable with those factors and whose lending criteria align with your situation.
Fox Davidson charges no broker fees for bridging loans. We are paid by the lender on completion. All costs are disclosed in writing before you proceed. There are no hidden charges and no surprises.
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Regulated Bridging Loans 2026: Frequently Asked Questions
A regulated bridging loan is short-term finance secured against a residential property that you or an immediate family member live in or intend to live in. If your home is being used as security, the loan must be regulated by law, you cannot choose an unregulated bridging loan in this situation regardless of what you plan to use the funds for. Only FCA-authorised bridging loan brokers and lenders can arrange regulated bridging finance.
A traditional mortgage is long-term finance, typically 25 to 35 years, designed for ongoing homeownership. A regulated bridging loan is short-term, usually up to 12 months, and is designed to bridge a temporary funding gap. Bridging loans are generally more expensive than traditional mortgages due to their short-term nature and the speed at which they are processed. However, that speed and flexibility is their core value, they solve problems that a standard residential mortgage simply cannot address within the required timeframe.
Yes. A first charge bridging loan clears your existing mortgage as part of the advance. A second charge bridging loan sits behind your existing mortgage, which remains in place, useful if you have a fixed rate with significant early repayment charges. Maximum LTV is lower on a second charge loan and interest rates are slightly higher, but it is a viable structure for many homeowners. We advise on the most appropriate structure for your circumstances.
Most regulated bridging loans complete in two to four weeks from full application. Straightforward cases with clean title, standard property, and responsive solicitors can complete in 10 to 15 working days. If you have a hard deadline, such as an auction completion within 28 days, tell us at the outset so we can plan the application process accordingly and have solicitors on standby.
Regulated bridging loan interest rates in 2026 start from around 0.35% per month for £1m + loans for HNW clients with a first charge at conservative LTVs on standard residential property. Most homeowner cases fall in the 0.55% to 0.7% per month range depending on LTV, property type, credit history, and exit strategy. Bridging loans interest rates tend to be higher than traditional mortgages due to the short-term nature of the product. We provide a written cost illustration before you commit.
There are three main exit routes: sale of property, where proceeds repay the bridge; refinance onto a residential mortgage or remortgage; and cash redemption, where a confirmed lump sum, such as an inheritance, pension, or business sale, repays the loan. A viable exit route is a must on all bridging loan applications, and the client will need to evidence that sufficient funds will be available during the term to redeem the loan in full.
If your exit cannot be achieved within the agreed timescales, give as much notice to your existing lender as possible, do not wait until the loan term expires. Most regulated bridging lenders will work with you to find a solution. Options include a term extension subject to fees, reducing the asking price to achieve a faster property sale, or refinancing the bridge with a new lender. Rebridging to another lender is typically more expensive than extending, as it indicates the original exit was not achieved within the planned term. Planning conservatively from the outset is the most effective way to avoid this situation.
Regulated bridging finance is FCA-regulated, which provides significant consumer protections including mandatory affordability assessments, standardised cost disclosure, and access to the Financial Ombudsman Service. That said, a regulated bridging loan is a secured loan, your home is at risk if you cannot repay. It is important to repay the bridging loan before it expires to avoid paying expensive fees and penalties, and to plan your exit strategy conservatively from the start. Fox Davidson will assess your exit strategy honestly and advise you clearly if we have concerns about viability.
Yes. Because most regulated bridges are repaid from a property sale or refinance rather than ongoing income, the affordability assessment focuses primarily on the exit rather than monthly earnings. Self-employed borrowers, company directors, contractors, and those with variable or complex income are regularly approved for regulated bridging. We have access to specialist lenders who are experienced with non-standard income profiles.
Lenders typically offer up to 70–75% LTV for first charges on regulated bridging loans. Critically, the maximum loan including all accrued interest and fees is normally limited to 75% LTV, meaning the gross loan must not exceed this threshold at the end of the term, not just at the start. On second charge regulated bridging the combined LTV including the existing mortgage is typically capped at 60–65%. We calculate the correct maximum loan amount for your situation based on the security value, existing borrowing, and planned term.
Typical documentation includes: photo ID for all applicants, proof of address (utility bill or bank statement dated within three months), bank statements showing source of deposit funds, existing mortgage statement, property details for the security property, evidence of your exit strategy (sale agreement, mortgage agreement in principle, or solicitor correspondence), and for cash redemption exits, evidence that a definite cash sum will be available during the term substantial enough to redeem the loan. We provide a personalised document checklist at the start of every case.
Yes. All regulated bridging loans require legal work to register the charge against your property. You need your own solicitor, and you will also pay the lender’s legal costs. The legal process is a key part of the application process and a common source of delays, which is why we recommend solicitors experienced in bridging conveyancing and manage the legal timeline proactively throughout.
Many regulated bridging lenders have no hard upper age limit, making bridging particularly suitable for older homeowners downsizing, releasing equity, or managing estate planning in later life. Some lenders cap at 75 or 80 at loan end, but specialist lenders often operate without age restrictions for high equity cases. We match each client with lenders whose criteria fit their personal circumstances.
Regulated Bridging Loan Sub-Pages: Explore Further
Fox Davidson has dedicated guides for the most common regulated bridging loan scenarios. Each provides detailed information, realistic cost examples, and advice specific to that situation.
- Regulated Bridging Loan for Chain Break — when your buyer pulls out or your chain collapses
- Regulated Bridging: Buy Before You Sell — purchase your next home before completing your sale
- Regulated Bridging Loan for Downsizing — move at your own pace, release equity on your terms
- Regulated Bridging for Divorce and Separation — fast capital when financial arrangements are being finalised
- Second Charge Regulated Bridging Loans — raise capital without disturbing your existing mortgage
- Regulated Bridging Loan Rates 2026 — current rate guide with illustrative examples
Contact Fox Davidson About a Regulated Bridging Loan
If you are considering a regulated bridging loan, we would welcome the chance to discuss your plans. There is no obligation to proceed and no cost for an initial conversation. We will give you an honest assessment of whether bridging is the right option for your situation, indicative terms based on your property and circumstances, and a clear explanation of the application process and timeline.
Fox Davidson has arranged regulated bridging finance for homeowners across the UK since 2013. We are FCA-authorised, fee-free, and every client has a dedicated broker from initial enquiry through to redemption — not a rotating team or an automated process.
📞 Call: 03300 100313
✉️ Email: enquiry@foxdavidson.co.uk
💻 Complete our online enquiry form
Fox Davidson is authorised and regulated by the Financial Conduct Authority. Your home may be repossessed if you do not keep up repayments on a loan secured against it. A regulated bridging loan is a short-term product and is not suitable as a long-term financial solution. We will always discuss suitability, costs, risks and alternatives before recommending any product.
Regulated bridging loans are arranged by our sister company FD Commercial & Bridging Ltd, an Appointed Representative of Connect IFA Limited
