A regulated bridging loan is a type of bridging finance that is regulated by the Financial Conduct Authority. By implication, an unregulated bridging finance loan is not regulated by the Financial Conduct Authority.
Which Loans Are Regulated and Which Are Not - The Basics
The very basic rule of thumb is that:
Regulated:
If you are a company, then the loan will be unregulated.
If you are borrowing against any commercial property such as offices, garages, warehouses then the loan is very likely to be unregulated.
Conversely
Unregulated:
If you are borrowing for any residential bridging that is your primary residence then it is likely to be regulated.
If you are borrowing for mixed use (e.g. shop and flat above) then if the residential element that you intend to live in comprises more than 40% of the whole space then it is likely to be regulated.
The Good News
If you need a regulated bridging loan, Penn Financial, authorised and regulated by the Financial Conduct Authority, can help. If you require an unregulated bridging loan then Penn Services (not regulated by the Financial Conduct Authority) can help you.
Whether you seek a regulated loan or an unregulated loan, Penn Group of Companies can help you achieve your goals all under the Group umbrella.
Please contact us
0333 344 3447
The information provided in this article is not intended to constitute professional advice and you should take full and comprehensive legal, accountancy or financial advice as appropriate on your individual circumstances by a fully qualified Solicitor, Accountant or Financial Advisor/Mortgage Broker before you embark on any course of action.