A regulated bridging loan applies when a borrower or their family live in or intend to live in the property securing the loan. Such loans are protected by the Financial Conduct Authority (FCA). A personal home can be secured with a first or second charge. The exception to this is when a second charge loan, above £25,000 that is used for business purposes, in which case it becomes unregulated.
A bridging loan becomes unregulated when a borrower or their family do not live or plan to live in the property securing the loan. It does not have the protection of the Financial Conduct Authority. Such loans are secured against investment properties, owner-occupied commercial and semi-commercial buildings, and development sites.