Regulated Bridging Loans

Regulated bridging loans are designed for purchases, refurbishments or refinance of properties that are occupied by the applicant or their family, of fall under Consumer Buy to Let regulations.

A bridging loan can be regulated or unregulated – depending on how you intend to use the property and how long you want the loan for.

A bridging loan will be classified as ‘regulated’ when it is secured against a property that is occupied by the borrower or by a close relative. Where the close relative is renting the property as a tenant of the borrower this is also considered regulated. Properties that have previously been occupied by the borrower or their family that have been inherited may also be considered regulated.

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First Charge

This can either be when purchasing a new property and the bridging lender would have the first charge secured against the property, or if we are remortgaging and replacing the existing mortgage that is secured on the property.

Second Charge

This would sit behind the existing mortgage lender and secured as the second charge against the property. This is typically restricted to 70% LTV.

These types of bridging loans are regulated by the Financial Conduct Authority (FCA) because they are secured on the borrowers home where they currently live, or a property they have previously lived in, or a property they have inherited. It is treated as important as a residential mortgage because if you do not keep up the payments/ redeem the loan in time, their home or property could be repossessed.

These types of bridging loans can be secured on properties such as houses, flats, and even plots of land that are going to be used to build a house that the borrower or a family member will live in as the owner. If the customer or their family has any intention of living in the property, either now or in the future the loan will be deemed as regulated.

Three areas ripe for innovation in the bridging market

Key Product Features

Speed
Flexibility
Large loan sizes up to £30m+
No early repayment charges
Interest roll-up / retained interest meaning no monthly payments
Up to 100% LTV available with additional security
Peace of mind that your clients' cases are being dealt with by industry-leading experts
Finance can be used to purchase or re-mortgage as a first or second charge loan
Loans can be secured against all property types: houses, flats, commercial units, land with planning, uninhabitable, and un-mortgageable properties

Customer benefits

Suitable when a borrower needs:

Access to money quickly
Has adverse credit and declined on the high street for a traditional loan
To purchase an un-mortgageable property
To bridge the gap between purchase and sale
To save a property chain break

Over 20 years of experience

Why choose Aria?

With over 20 years of experience in bridging finance and the specialist distribution industry, our expert team works on your behalf to provide access to market-leading rates with rapid loan completion as standard. We offer one point of contact from enquiry through to completion, always aiming to make the process as smooth as possible.