Are bridging loans regulated?
The majority of a bridging loans are generally unregulated, however some will be regulated. To determine whether the bridging loan you require is a fairly simple process. Many bridging loan lenders do not write regulated business, i.e. they tend to be “non-status”, although they can be registered with the FSA. If the bridging loan is regulated the lender will need to do a full fact find about all your financial circumstances. All first charge loans on your main residence whether a mortgage or bridging loan will be regulated. Any other type of loan is currently unregulated e.g. a second charge loan on your main residence. Any loan secured against any type of commercial property or residential buy to let investment property is not regulated. The key point here is that even if a bridging lender is registered with the FSA, the FSA is unlikely to be able to help with any unregulated loan disputes!
