Five things advisers should know when recommending regulated bridging
Lesley Saint, underwriting manager at LendInvest, outlines five things mortgage advisers and intermediaries should work through on every regulated case.
The learning objectives for this article are to:
- Classify bridging loan regulatory status: Apply FCA perimeter guidance correctly by assessing property occupation intent (specifically the 40% residential use threshold by borrowers or family members) rather than relying on property type or loan size.
- Evaluate robust exit strategies: Analyse and evidence the viability of core exit routes (property sale vs. long-term refinance) to meet mandatory FCA affordability and suitability requirements.
- Analyse total finance costs and client circumstances: Assess compound interest mechanisms, fee structures, potential exit delay risks, and Consumer Duty obligations concerning vulnerable non-borrowing residents.
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