Regulated Bridging Loan Rates 2026 — Updated October 2026
- Regulated bridging for homeowners — typically +0.10%–0.25% above an unregulated bridge at the same LTV
- From 0.65%/moRegulated bridging for homeowners — typically +0.10%–0.25% above an unregulated bridge at the same LTV
- Mandatory reflection period after mortgage offer — regulated bridges only
- 7 daysMandatory reflection period after mortgage offer — regulated bridges only
- Share of bridging now regulated
- 48%Share of bridging now regulated
- Trigger for regulation — borrower lives or will live in the security property
- Primary residenceTrigger for regulation — borrower lives or will live in the security property
Regulated bridging loans apply when the security property is or will be the borrower's primary residence — the home they live in or intend to live in. In October 2026, regulated bridging rates start from 0.65% a month and carry a modest premium of 0.10%–0.25% above equivalent unregulated bridging rates, reflecting the additional lender cost of FCA-regulated processing (ESIS documentation, affordability assessment, and the 7-day reflection period). The premium is small relative to the importance of the regulatory protection: regulated bridging gives the borrower the full suite of FCA consumer protections including the right to complain to the Financial Ombudsman Service. Regulated loans now make up 48% of bridging.
Regulated vs Unregulated Bridging Rates — October 2026
Swipe the table sideways to see every column.
| Scenario | Regulated? | Rate (70% LTV) | Unregulated equivalent | Premium | Lender examples |
|---|---|---|---|---|---|
| Chain break — buying new home before selling existing (existing home as security) | Yes — FCA regulated | 0.80%–0.95%/month | 0.68%–0.80%/month | +0.10%–0.20% | Bridgebank Capital, UTB, Together, Precise |
| Downsizing — bridge against home to buy retirement property | Yes — FCA regulated | 0.80%–0.95%/month | 0.68%–0.80%/month | +0.10%–0.20% | Bridgebank Capital, UTB, Together |
| Investment property (borrower does not live there) | No — unregulated | 0.68%–0.80%/month | N/A | None | Octane, LendInvest, Roma, Shawbrook, all major lenders |
| BTL property (rental, borrower does not live there) | No — unregulated | 0.70%–0.85%/month | N/A | None | Most bridging lenders |
| Borrower will move into property during bridge term | Yes — FCA regulated | 0.80%–1.00%/month | 0.70%–0.85%/month | +0.10%–0.20% | Restricted panel — regulated specialists |
| Second charge on primary residence | Yes — FCA regulated | 0.85%–1.05%/month | 0.75%–0.90%/month | +0.10%–0.20% | Bridgebank, UTB, specialist regulated panel |
What determines your rate
What triggers FCA regulation on a bridging loan
A bridging loan is regulated by the FCA if: (1) The security property is the borrower's main residence; (2) The borrower or a family member has or will occupy the security property; or (3) The security is a property the borrower intends to move into. If none of these apply — the security is purely investment or commercial — the loan is unregulated. The distinction matters because: regulated loans have consumer protections (ESIS, 7-day reflection, FCA oversight); unregulated loans are typically faster and marginally cheaper.
The ESIS requirement and 7-day reflection period
Regulated bridging lenders must issue a European Standardised Information Sheet (ESIS) to the borrower. The borrower then has a mandatory 7-day reflection period before they can accept the offer. This adds approximately 7–10 days to a regulated bridge compared to an unregulated bridge — important for time-sensitive cases. On a 28-day auction case involving a regulated property, this reflection period must be factored into the timeline.
FCA protection — why regulated is not necessarily worse
The regulatory overhead of an FCA-regulated bridge is not a disadvantage for borrowers — it is protection. Regulated bridging gives the borrower access to the Financial Ombudsman Service if a dispute arises, requires lenders to assess affordability properly, and mandates clear cost disclosure in the ESIS. For homeowners using their home as security, this protection is appropriate and valuable. The small rate premium is the cost of that protection.
Lender panel for regulated bridging
Not all bridging lenders hold FCA consumer credit authorisation for regulated bridging. The main regulated bridging lenders include Bridgebank Capital, United Trust Bank, Together Money, Precise Mortgages, and West One Loans. DBF identifies the most competitive regulated bridging lender for each case.
Worked cost example
Chain break bridge — homeowner buying new property before existing home sells.
Existing home value: £480,000. Outstanding mortgage: £185,000. New property: £560,000.
Bridge needed: £375,000 (from existing home equity, net of mortgage).
Bridge security: existing home (borrower's primary residence) — REGULATED.
LTV on existing home: (£185,000 + £375,000) / £480,000 = 116.7% — too high.
Revised approach: bridge secured on new property (75% LTV = £420,000 facility).
New property (being purchased): borrower will live there — also REGULATED.
DBF solution: regulated bridge at 0.85%/month (UTB). 4-month term.
Interest: £12,750. Arrangement fee (1.75%): £6,563. Legal (expedited): £2,200.
Total: £21,513. ESIS issued. 7-day reflection period accounted for in timeline.
Existing home sells after 3 months. Bridge repaid. Final home purchase completes.
Terms the same working day — no upfront fees on loans over £1m
The figures above are indicative and describe the best case. Send your own scenario and we will come back the same working day with terms from the lenders that actually fit it.
- Enquiry type
- Bridging Loan
- About
- Regulated Bridging Rates
No upfront fees on loans over £1m.
Enough detail to price it is the amount, the security, the purpose and how you plan to repay. The rest we can fill in on a call.
Whole of market · 130+ lenders · FCA 814533 · Same working day response
Rate context and outlook
Bank Rate is 3.75% after the 17 September hold, with three MPC votes for a rise and the next decision on 5 November. Bridging pricing follows lender funding costs and swap rates rather than Bank Rate directly.
The latest Bridging Trends average was 0.81% per month, with average LTV of 55% and completion in 46 days. We expect standard-band pricing to hold in the 0.65%–0.95% range through Q4 2026, with upward pressure on the most competitive prime products if swap rates stay high.
Reviewed by David Doulton, Director, Doulton Bridging Finance — over 20 years in property finance. Last reviewed 1 October 2026. Doulton Money Ltd t/a Doulton Bridging Finance, FCA No. 814533.
What Makes a Bridging Loan Regulated vs Unregulated?
The distinction is determined by who will occupy the property, not by the lender or the loan structure. A bridging loan is regulated when:
- The borrower (or their immediate family) currently lives in the property, or
- The borrower (or their immediate family) intends to live in the property in the future, or
- The borrower (or their immediate family) lived there within the past 12 months
If the property is purely an investment - a buy-to-let, a commercial asset, a development site - and there is no element of personal occupation, the loan is unregulated. Unregulated bridging sits outside MCOB and does not require the lender to hold residential mortgage permissions.
Regulated Bridging
- Owner-occupier chain break bridge
- Purchase of a new home before selling existing
- Buying a property to live in at auction
- Remortgaging your home with a bridge while works complete
- A family member living in the secured property
Unregulated Bridging
- Buy-to-let property acquisition
- Commercial property purchase or refinance
- Property development with no intention of occupation
- SPV / company-owned property
- Investment portfolio refinancing
If there is any ambiguity - for example, a borrower purchasing a property that might be used as a holiday home - the cautious approach is to treat it as regulated. A specialist broker will assess this for you upfront.
Which Lenders Offer Regulated Bridging?
Not all bridging lenders hold the FCA permissions required to offer regulated products. Those that do include:
Strong regulated bridging lenders - particularly well-suited to residential chain breaks, remortgage exits, and owner-occupier scenarios: United Trust Bank, Together, Shawbrook Bank, Precise Mortgages, Kuflink.
Additional regulated lenders on our panel: MT Finance, Hope Capital, Aspen Bridging, LendInvest, Masthaven, InterBay.
Lender suitability depends on LTV, credit profile, property type, and exit strategy. Not every lender above offers regulated products across all scenarios - we will match your case to the best-fit lender.
Key Protections Under a Regulated Bridging Loan
Choosing a regulated product is not just about finding a lender who will lend - it confers legal protections that apply for the life of the loan:
ESIS Document
You must receive a European Standardised Information Sheet before accepting the offer, setting out all key terms in a prescribed format so you can compare products fairly.
Reflection Period
A minimum reflection period is required after you receive the ESIS. The lender cannot pressure you to accept quickly, and you have time to reconsider.
MCOB Rules
The lender is bound by the FCA's Mortgage Conduct of Business rules, including responsible lending requirements. They must assess affordability and must not lend irresponsibly.
Financial Ombudsman Access
If you have a complaint about the lender's conduct that is not resolved internally, you can refer it to the Financial Ombudsman Service free of charge.
FCA Lender Oversight
Only lenders who hold the appropriate FCA permissions can offer regulated bridging. This provides a baseline of regulatory oversight that unregulated lenders are not subject to.
Arrears Handling Rules
MCOB sets out how lenders must deal with borrowers in financial difficulty - including a requirement to consider alternatives to repossession before taking enforcement action.
Frequently asked questions
What is the difference between regulated and unregulated bridging loans?
Regulated bridging loans apply when the security property is the borrower's main residence. They are governed by FCA rules, require an ESIS, have a 7-day reflection period, and give the borrower access to the Financial Ombudsman. Unregulated bridges apply to investment or commercial property — they are faster (no reflection period) and marginally cheaper (no regulatory overhead). Both types are available through DBF.
Are regulated bridging rates higher?
Marginally — typically 0.10%–0.25%/month above equivalent unregulated rates at the same LTV. On a £300,000 bridge for 4 months, this premium costs approximately £1,200–£3,000 — a small cost for the consumer protection that regulated bridging provides.
How long does a regulated bridge take to complete?
Regulated bridges take 7–10 days longer than unregulated, due to the mandatory 7-day reflection period after the mortgage offer. A standard unregulated bridge might complete in 7–10 working days. A regulated bridge will take 14–18 working days. For auction cases, this reflection period must be factored into the 28-day timeline.
Can I take out a regulated bridging loan without using a broker?
The regulated bridging lenders that access the most competitive products (Bridgebank Capital, UTB, Precise) are predominantly broker-only. Regulated bridging requires FCA-authorised advice — DBF is FCA-authorised (814533) to advise on regulated mortgage contracts and provides this advice as part of the service.
Is a chain break bridge always regulated?
It depends on which property is used as security. If the security is the borrower's existing home (where they currently live) — regulated. If the security is the new property being purchased (where the borrower will live) — regulated. If the security is a third investment property with no residential connection — potentially unregulated. Most chain break bridges are regulated. DBF confirms the regulatory status of every case before proceeding.
Which lenders offer regulated bridging loans?
Lenders offering regulated bridging include United Trust Bank, Together, Shawbrook Bank, Kuflink, Precise Mortgages, MT Finance and Hope Capital, among others. Not all bridging lenders hold the FCA permissions required - a specialist broker will direct your case to the right lender for your specific situation.
Can I use a regulated bridging loan to buy a property I don't yet live in?
Regulation is determined by whether you or a close family member will occupy the property - either now or in the future. If you are purchasing a property you intend to live in, the loan will be regulated even before you move in. If you are purchasing purely as an investment with no intention of personal occupation, it will be unregulated.
How quickly can a bridging loan complete?
Typically 2–4 weeks; the latest market average is 46 days. Urgent cases with clean title and a quick valuation can complete in 7–10 working days.
What fees come on top of the interest rate?
An arrangement fee of 1%–2%, valuation of about £500–£1,500, legal fees of £1,500–£3,000 for both sides, and on some products an exit fee of up to 1%.
Can the interest be rolled up?
Yes. Most bridges roll interest into the loan and repay it at the end, so there are no monthly payments; serviced and retained interest are also available.
What exit strategies do lenders accept?
A sale, a refinance to a mortgage, or other funds such as an inheritance or business sale. The stronger the evidence, the better the rate.
Can I get a bridging loan with bad credit?
Often, yes. Lenders focus on the property and exit; recent defaults or CCJs usually move you up a pricing band rather than rule you out.
Is a bridging loan regulated?
Only when it is secured on a home you or your family live in or will live in. Investment and business bridges are unregulated.
Where this applies
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Independent whole-of-market advice · FCA No. 814533