Bridging loans fall into two categories: regulated and unregulated. The distinction matters because it affects your consumer protections, the lenders available, and the types of property you can use as security.
Regulated Bridging
A bridging loan is regulated when the security property is, or will be, occupied by you or an immediate family member. Regulated bridges are governed by the FCA, offering additional consumer protections including a cooling-off period and clearer terms.
Unregulated Bridging
Unregulated bridging covers investment properties, commercial premises and development sites. While there are fewer consumer protections, unregulated lending is typically more flexible and faster to arrange. It's the most common form of bridging in the UK.