Red flags
- Promises of approval, or a firm completion date, before any valuation or legal review
- Requests for large upfront fees before you have written terms
- Headline rates with vague fee details, or reluctance to show the net advance and total repayable
- Pressure to sign or pay within hours, without time to take legal advice
- No clear physical address, company number or regulatory status
- Contact only through personal email or messaging apps
- Payment requested to a personal account, or to an account that does not match the firm
- Terms that change repeatedly without explanation as completion approaches
Checking a firm
Search the firm on the FCA register to see its permissions and any warnings, and check that the contact details you have match those on the register. Firms that arrange or lend on regulated mortgage contracts must be authorised. Many non-regulated bridging lenders are not FCA authorised for that lending, which is normal, so look at their track record, how long they have been lending and how they are funded. The FCA's ScamSmart pages explain common frauds, and you can check a company on the Companies House register.
Fees: what is normal
Valuation fees are normally paid upfront to the lender's surveyor. Lender arrangement fees are usually added to the loan at completion. Some brokers charge a fee, and some lenders charge a commitment fee; both should be disclosed in writing before you proceed, with any refund terms. Be wary of any fee that is large, vague or demanded before you have terms in writing. See bridging loan fees.
A checklist for comparing offers
- Net advance on day one and total repayable over your expected term
- Minimum interest period and refund of unused retained interest
- Exit fee and how it is calculated
- Valuation basis: market value or a restricted-period value
- Extension terms and default interest rate
- Personal guarantees and additional security required
- Release terms for works funding or additional security
Our guide to choosing a bridging lender covers how to compare lenders in more detail.
Signs of a good lender or broker
Clear written terms, consistent answers, a realistic view of the valuation and exit, and willingness to explain costs and risks. A good broker searches the market, approaches only lenders likely to accept your case and discloses how they are paid. You can compare lenders on our panel, with indicative terms, on Instant Quotes, and see summaries from lenders' own published information in our lender directory.
If something goes wrong
Raise a complaint with the firm first. For regulated activities, you may be able to take an unresolved complaint to the Financial Ombudsman Service. If you suspect a scam, stop contact, do not pay and report it. Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Common questions
How do I know if a bridging lender is legitimate?
Check its company details and track record, whether it appears on the FCA register where relevant, and whether its terms and fees are clear and in writing.
Should I pay a fee before getting a bridging offer?
A valuation fee is normal. Be cautious of large fees demanded before you have written terms, and ask what is refundable.
Are all bridging lenders regulated by the FCA?
No. Lenders must be authorised for regulated bridging secured on homes, but much investment bridging is not regulated, so lenders may not hold those permissions.
What if my lender changes the terms after valuation?
It can happen if the valuation or checks differ from what was assumed. Ask for the reasons in writing and compare the new terms against the market before accepting.
This guide is for general information only and should not be treated as legal, tax or financial advice. Lender requirements depend on the property and your circumstances.
