Unregulated Bridging Loans & Non Status
Unregulated bridging loans can be faster to approve and offer more flexibility in terms of deal structure because they do not fall under the regulatory framework of the FCA.
KP Finance offers a fast way to purchase properties through unregulated bridging loans, with flexible terms over 3 to 24 months.
Our ability to make quick decisions has seen us become a hugely popular option for developers and investors looking to raise capital through bridging finance.
Bridging loans are available from £50,000 to £10 million with funding available in 2 to 4 weeks with a clear exit strategy provided.
Call the number below to speak to the KP Finance team or tell us your requirements using the form provided.
Call +44 203 488 1128
Did You Know?
In the UK bridging market, around 50% is unregulated activity and 50%is regulated activity.
What is an Unregulated Bridging Loan?
An unregulated bridging loan does not fall into the remit of the Financial Conduct Authority and means that private lenders can offer bridging loans with more flexible terms and faster turn around times.
Importantly, with an unregulated bridging loan, the funds cannot be used against the borrower’s primary residence. Any borrowing against a primary residence falls under FCA regulation to offer more protection to the candidate so they do not risk losing their family home.
Unregulated bridging finance has the same purpose as typical bridging loans, with the opportunity to buy property quickly, carry out refurbishments or acquire property at an auction.
For residential, commercial or investment opportunities, KP Finance can help facilitate unregulated bridging loans for your requirements.
We draw on more than 30 years of combined team experience to make your proposal attractive to bridging lenders, offering sound advice and helping you get approval and funding in just a few weeks.
Table of Contents
ToggleWhat Is The Main Difference Between Regulated and Unregulated Bridging Finance?
The main difference between regulated and unregulated bridging finance in the UK falls in how the loan is monitored and controlled by the Financial Conduct Authority (FCA).
A regulated bridging loan is when the funds are secured against a property that is or will be the borrower’s main residence in the future.
Since this involves someone’s home, it is subject to FCA rules that are designed to protect the consumer, and this comes with stricter affordability checks and underwriting.
For anything that does not go as planned, the customer has more protection and access to complaints procedures through the Financial Ombudsman Service.
On the other hand, unregulated bridging finance is not covered by the FCA and is typically used for investment or business purposes. This includes buying or refinancing buy-to-let, commercial properties, or land, often through a limited company.
The unregulated options allows for more flexibility in terms of criteria, speed, and deal structure, but also comes with fewer protections for the borrower—placing greater responsibility on themselves to understand the risks, terms and exit strategies.
How To Apply For Bridging Finance Step-By-Step
- Make an enquiry
- Get an offer
- Get a property valuation
- Complete with solicitors
- Your funds are released
What Are The Terms You Offer?
| Term | Details |
|---|---|
| Loan Term | 3-24 months |
| Loan Amount | £50,000 – £10M+ |
| LTV | Up to 75% |
| Interest Rates | From 0.70-1.20% per month |
| Repayment Type | Retained, Rolled-up or Serviced |
| Security | First charge |
What Can I Use Unregulated Bridging Finance For?
- Property purchases
- Investment property purchases
- Residential property
- Commercial property
- Buying property at an auction
- Renovations and refurbishments
- Chain breaks in property sales
- Land acquisition
What Properties Can I Purchase?
- Residential
- Commercial (all asset classes),
- Mixed-use
- Land purchases
- HMOs
- Hotels
- Warehouses
- Garages
- Student accommodation
- Leisure centres and gyms
- Offices
- Blocks of flats
What Are The Pros of Unregulated Bridging Loans?
Favourable terms – Unregulated bridging allows for more favourable terms including higher loan amounts and higher loan-to-value ratios, such as 75% or 80%.
More flexibility – Lenders can offer more flexibility in terms of deal structure, including interest rates and repayment terms, being able to take a more personalised view on structuring the deal because it does not fall under heavy regulatory conditions.
Faster decisions – Applications for unregulated bridging loans will not endure the same level of strict affordability checks and underwriting procedures, which allows for faster. decisions on loan applications.
What Are The Cons of Unregulated Bridging Loans?
Less protection for borrowers – Being unregulated, the customer is not protected in the same way as with a regulated lender or a big bank, and they cannot complain to the Financial Ombudsman if they are unsatisfied.
Responsibility on the borrower – With no regulator to complain to, the borrower has the responsibility to understand the risks, terms and exit strategies when taking out a bridging loan. It is up to the borrower to find a good lender that can offer them flexibility and extensions if they need it, and using a bridging loans broker could be useful to help source one. Having strong legal support from their solicitor will be able to help if challenges arise.
What is The Criteria To Apply With KP Finance?
- UK resident or company
- Property used as security
- Property is in UK, Scotland or Wales
- Clear exit strategy
- Financial records and statements
- Proof of funds/deposit
- Good credit history preferred but not essential
Repayment Example
- Loan Amount: £1,000,000 (at 70% LTV, property value = £1,428,571)
- Term: 12 months, Interest Rate: 1% per month
- Repayment Type: Rolled-up (interest paid at the end)
- Total Interest: £10,000 × 12 = £120,000
- Total Repayment: £1,120,000 (loan + interest)
Why Should I Use KP Finance For Bridge Finance?
We understand the needs of property developers and investors. When timing is of the essence, we are able to provide fast decisions, approvals and funding where needed.
KP Finance can help you access the most competitive rates and flexible terms across the entire UK market.
Founded in 2016, our expert advisors have more than 30 years combined experience in the bridging sector and will offer market knowledge and established relationships with lenders to get you the best terms possible.
KP Finance is not simply an intermediary. We are involved in the entire transaction from initial enquiry to post completion and want to help you achieve your goals in the most practical and effective way.
Samuel Kalms, Director
Frequently Asked Questions
How Much Does Bridging Finance Cost?
Interest rates for bridging loans start from 0.40% per month over BOEBR (variable) or c.0.7%-1.25% fixed) and will vary depending on the level of risk and experience of the customer.
What Are The Added Fees Involved With Bridging Finance?
- Arrangement fees (typically 2%)
- Valuation fees
- Legal fees
- Exit fees (if applicable)
Which Parts of The UK Do You Cover?
We proudly offer bridging finance in Aberdeen, Birmingham, Brighton, Bristol, Cardiff, Cornwall, Durham, Edinburgh, Glasgow, London, Liverpool, Leeds, Leicester, Manchester, Nottingham, Newcastle, Sheffield, Southampton and many more.
Is My Loan Secured Against a Property?
Yes, bridging finance is secured against the enquired property or assets as a first legal charge.
How Soon Can I Get a Decision in Principle?
KP Finance can typically provide an initial decision within 24 to 48 hours. We will require information about the property, its value and your plans for it. We may also request proof of funds for a deposit and recent financial records.
How Fast Can I Receive Funding?
Bridging loans can be funded as quickly as 5 days (should circumstances allow) but the full process from start to finish can typically be 3 to 4 weeks.
Are Repayments Made Monthly or Rolled Up?
The interest and repayments for bridging finance are usually rolled up and paid on exit of the loan term. Other options exist such as monthly (serviced) or interest deducted upfront (retained).
Is My Property At Risk of Repossession?
If your loan has been in arrears for a long time and there is no immediate sign of repayment, the lender may repossess the property in order to recover their losses.
However, before entering this stage, the lender may extend the terms of your loan, giving you longer to repay, but this will incur additional interest and possibly a late charge.
Other options include the opportunity to refinance under new terms, which may be less favourable than the original ones.
At this point, KP Finance will be on hand to assist you and help you to arrange the best possible outcome.
