Regulated Bridging Loans
Bridging loans can be used for a wide variety of purposes, from buying a residential property to paying for refurbishments or modifications to an existing commercial property investment. Recently, borrowers have been relying on bridging loans more than ever before as the high street and private lenders have become increasingly risk averse.
A regulated bridging loan is a form of short term funding secured by a charge on a borrower’s residential property until next stage financing is secured. Bridging loans secured by a first charge are regulated by the Financial Conduct Authority (FCA) and are subject to the same regulations as the mainstream mortgage market.