As you will have seen from the first article, The Basics: Regulated Bridging Loans versus Unregulated Bridging Loans, in this series which you can see here, 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 therefore not regulated by the Financial Conduct Authority. If life wasn’t complicated enough – what are the differences between the two? Determining if you need an unregulated or regulated bridging loan will depend on the type of property you wish to purchase. A regulated bri ..read more

If you're in search of a suitable bridging loan, consider the following: 1. Determine your loan requirements: Define the exact amount and duration needed for the loan. Remember that bridging loans come with higher costs, so ensure you can repay them within a short period. 2. Understand your financial situation: Be prepared to answer questions about your property's value, existing mortgage details, equity, and monthly income and expenses when discussing with potential lenders. 3. Conduct thorough research: Don't settle for the first loan option you encounter. Explore various lenders and conside ..read more

There are regulated and unregulated bridging loans, to summarise: A regulated bridging loan is borrowing that: If you are looking to raise a first or second charge against a property that is the residence of the owner, then you will need a regulated bridging loan. A minimum of 40% of the property will need to be (either now or in the near future) lived in by the homeowner or their family. An unregulated bridging loan is borrowing that: If you are looking to purchase or reloan a secondary property, commercial asset or a buy-to-let investment, then you can use an unregulated bridging loan. These ..read more

At Penn Services, we pride ourselves on delivering comprehensive business finance solutions to address every aspect of your commercial funding needs. Our unwavering commitment to exceptional customer support has been instrumental in our sustained growth and success. We are dedicated to offering reliable financial advice and tailored solutions to businesses of all sizes. From sole traders and contractors to SMEs, property developers, and investors, we cater to a diverse range of clients. Our expertise spans various industries and sectors, ensuring that we can provide the right financing options ..read more

While bridging loans serve as a short-term financing solution, it's essential to consider other alternatives and loan options. Here are a few options worth exploring: 1. Remortgage: Consider refinancing your current home to release funds. However, be cautious about long-term implications like changing interest rates or a potential decline in income. Seeking expert advice is recommended. Most importantly remember: failure to make payments on your home may mean your home is repossessed. 2. Buy-to-Let: Switching your existing mortgage to a buy-to-let arrangement if you no longer live in the prope ..read more

What Difference Does IT Make? As you will have seen from the first article in this series, a regulated bridging loan is a type of bridging loan that is regulated by the Financial Conduct Authority. By implication, an unregulated bridging loan is therefore not regulated by the Financial Conduct Authority. To summarise: A regulated bridging loan is borrowing that: If you are looking to raise a first or second charge against a property that is the residence of the owner, then you will need a regulated bridging loan. A minimum of 40% of the property will need to be (either now or in the near futur ..read more

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 i ..read more