One of the lingering misconceptions about bridging finance is that it is always unregulated, and may therefore have an element of disreputability about it. This is not the case—in fact, if you want bridging finance for your residential property, this loan has to be regulated. The most recent bridging trends report revealed that nearly half of all bridging loans were regulated in Q2, with 46.1% of loans being regulated.
There are a range of ways to use regulated bridging finance, and these can be used to benefit you on your finance journey. Regulated bridges can be very handy for residential properties in a variety of scenarios, including:
- Completing your transaction quickly, e.g. if the vendor wants a quick sale
- You need to buy a property before selling your old house
- You want to refurbish your primary residence to add value before selling
So what is the ultimate benefit of regulated bridging finance?
Ultimately, a regulated bridging loan will allow you to move quickly on your property transaction, giving you flexibility and freedom.
Regulated bridging finance is regulated by the Financial Conduct Authority (FCA) and it is therefore heavily scrutinised. For lenders, this means there is a strict level of responsibility that must be adhered to. Resultantly, there are only a limited number of lenders who will operate in this area, as the extra administrative work involved means such loans can be very long-winded and ultimately less profitable for lenders.
Fortunately, our wealth of experience in this area means we have developed excellent relationships with the lenders who will offer regulated bridging loans. If you need regulated bridging finance, we will use our creative and persistent approach to assist you. Your solution will come from either a bridging lender or a mainstream bank, and will be fully regulated as per FCA regulations.
To take advantage of our market-leading position in this sector, get in touch for indicative terms.