Residential bridging finance
Residential Bridging Loans Derby
FCA-regulated short-term lending for owner-occupiers across Derby and the wider Derbyshire commuter belt. We package the case to authorised partner lenders and hold the timetable together day by day.
- Decisions in hours
- Completion in days
- £100k to £25m
- Derbyshire specialists
Derby · Derbyshire
Bridge to your next move.
About residential bridging
Short-term property finance across Portsea Island and Hampshire.
Regulated bridging is short-term lending secured against a home that you or an immediate family member already live in, or are about to move into. The Financial Conduct Authority regulates this product because consumer protection rules apply when the security is a residence. For Derby homeowners caught between a sale that has wobbled and an onward purchase that will not wait, regulated bridging buys the time you need without forcing you to walk away from the property you want. We work alongside FCA-authorised partner firms on every regulated case and keep the underwriting tight from the first call.
Regulated bridging suits owner-occupiers in Derby and across Derbyshire who need a residential bridge against a property they live in or plan to live in. Typical borrowers include downsizers selling a four-bedroom detached in Allestree or Mickleover and moving to something smaller closer to the Cathedral Quarter, growing families moving from a Littleover semi to a larger home in Darley Abbey, and homeowners completing on a new build in Chellaston or Oakwood before their existing home has reached the market. The product fits clients with clear income, a clean credit file, and a credible sale plan inside a 12-month window. It does not suit speculative buying or property held purely for investment, both of which sit under the unregulated regime.
A typical case
How a residential bridging case runs in Derby.
A retired couple in Allestree accept an offer on their four-bedroom detached at £465,000, then find the 1930s semi they want in Littleover on the market with two other offers already on the table. Their buyer is solid on paper but stuck behind a related sale in Chaddesden that will not exchange for another five weeks. Without a bridge they lose the Littleover onward purchase to a cash buyer. We package the case to a regulated lender that lends across Derby and the wider Derbyshire residential market, sitting the bridge at 65% loan to value against the Littleover purchase on a 9-month term with rolled-up interest. Indicative terms back inside 24 hours, full underwriting in 5 working days, completion 12 working days after instruction. The couple complete on the Littleover home, move in, and the Allestree sale completes 7 weeks later. The bridge redeems out of the sale proceeds with 2 months of headroom on the term. Similar mechanics work for buyers in Mickleover, Darley Abbey and Spondon where chain dependencies routinely stretch beyond the original timetable. With local sold prices in DE22 sitting around a £250,000 median and DE3 closer to £298,000, residual equity on a long-held Derby family home is normally enough to support a 6 to 9-month regulated bridge cleanly.
Rates and fees
What this product costs.
Regulated bridging in the current market prices between 0.55% and 0.85% per month depending on loan to value, term and the strength of the exit. Cases that are clearly inside 6 months with a sold subject-to-contract onward sale price at the lower end of that band. Cases that need the full 12 months, or where the sale property is not yet on the market, price higher. The arrangement fee is typically 1.5% to 2.0% of the loan and is normally added to the facility rather than paid up front. Valuation fees run case by case and are paid on instruction of the valuer. Borrower and lender legal fees sit at roughly £1,500 to £3,000 per side for a clean residential security in Derby. Most regulated bridging products carry no exit fee. We quote every line item before you instruct, and we never describe a case as fee-free. There are always fees on a bridge.
Loan size and term
LTV ceiling and how long you borrow for.
Maximum loan to value on regulated bridging is typically 70% against open market value for an owner-occupied home in good condition. Most Derby cases settle at 65% to give the lender comfort on the exit. Terms run from 1 month to 12 months for FCA-regulated work. Most homeowners use a 6 to 9-month facility, sized to give the onward sale a realistic window without paying for time you do not need.
Exit options
How the loan redeems.
Regulated bridging has two main exit routes. The first is the sale of the existing residence: the buyer in Allestree, Mickleover or Chaddesden completes, the bridge redeems out of the sale proceeds, and any residual equity returns to the borrower. The second is a refinance onto a long-term residential mortgage where the borrower has decided to keep the property, perhaps for an adult child. Lenders want a credible sale strategy at the point of drawdown. That means agent appointed, property marketed, asking price in line with comparables in the relevant Derby postcode, and ideally an offer agreed. Where the property is not yet on the market, expect questions on timing and pricing. A clear exit is the single biggest factor in getting a regulated bridge over the line at sensible pricing.
What makes a deal work
The clean cases.
Regulated cases run cleanly when the borrower has steady income, a clean credit file, a property that values reliably, and a sale plan that holds water. A retired couple with pension income, no consumer debt, a 1970s detached in Mickleover at a sensible asking price, and a buyer already through their mortgage offer is the textbook clean case. The bridge underwrites in days. Lenders also reward properties in mainstream Derby postcodes, freehold houses rather than leasehold flats with short leases, and conventional construction. Where the onward purchase is also straightforward, the whole chain settles inside a 6 to 9 month window without drama.
What doesn't
Where cases break.
Cases break where the sale property is overpriced for its DE postcode, where the borrower has unresolved credit issues, where the security has non-standard construction, or where the onward use is partly commercial. Cases also stall where the borrower expects the bridge to fund a purchase larger than the realistic equity left after redemption. We will not progress a case where the maths fail on the exit, because the consumer harm in a forced sale at the back end is real and not theoretical.
Our process
From first call to drawdown.
Step one, a triage call with one of our brokers. We need to see the purchase, the sale, the residual equity, and the credit profile. Step two, we package the case and put it to two or three regulated lenders depending on the specifics, and route the regulated activity to an FCA-authorised partner firm. Step three, indicative terms back inside 24 hours. Step four, instruct valuation and solicitors in parallel. Step five, full credit underwriting at the lender, typically 3 to 5 working days. Step six, drawdown, with funds released to the borrower's solicitor in line with the onward purchase completion. From triage to completion is normally 10 to 14 working days. Regulated bridging on owner-occupied residential property is FCA-regulated. We are not directly authorised by the Financial Conduct Authority, and we work alongside authorised partner firms for regulated lending.
Talk to us
Tell us about the deal.
A quick triage call, then indicative lender terms inside 24 hours. We work Derby and across Derbyshire.
FAQs
Frequently asked questions on residential bridging
Is regulated bridging the same as a residential mortgage?
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No. A residential mortgage is long-term, typically 15 to 30 years, with monthly capital and interest payments tied to your income. Regulated bridging is short-term, 1 to 12 months, secured against the same kind of property but priced on a monthly rate and exited in a single redemption when the property sells or refinances. Both fall under FCA regulation when the security is owner-occupied; they are different products with different underwriting and different cost profiles. We use regulated bridging in Derby where a homeowner has a real timing gap, not as a substitute for a long-term mortgage.
Can I take regulated bridging on a buy-to-let in Derby?
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Not as regulated bridging. The regulated regime applies only where the security is occupied by the borrower or an immediate family member. A buy-to-let in Normanton or Sinfin held purely for rental income sits under the unregulated regime. Unregulated rates are often only marginally higher, and the process is quicker because the FCA consumer rules do not attach. Most Derby landlord clients use our unregulated bridging product instead.
How quickly can a regulated bridge complete in Derbyshire?
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Standard regulated completion is 10 to 14 working days from instruction. Faster is possible where the title is clean, the valuation comes back inside a week, and the solicitors on both sides respond promptly. We have completed regulated cases in 7 working days where every party moved at pace, but we do not promise speed at the cost of due diligence on a consumer case secured against someone's home.
Next step
Talk to a Derby bridging specialist about residential bridging.
Indicative terms in 24 hours. We work residential bridging cases across Derby and the wider Derbyshire market on a same-day enquiry response.