What Is an Unregulated Loan

Regulated loans are those on a property you are living in or are going to live in. Unregulated are useful for corporate entities, properties you aren’t going to live in, or individuals with unique circumstances that don’t fall into other categories.

What is the difference between a regulated loan and an unregulated loan?

Put simply: a regulated loan is regulated by the Financial Conduct Authority (FCA), whereas an unregulated loan is not. Regulation means that consumers are protected from incorrect advice or miss-selling from lenders or brokers. Unregulated bridging loans don’t have this protection.

What constitutes a regulated loan?

In simple terms a regulated mortgage contract is a loan secured by a charge over a residential property which is lived in by you, a family member or other close person and the purpose of the loan is not wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by you.