## Read the FCA classification conditions
[FCA PERG 4.4](https://handbook.fca.org.uk/handbook/perg4/perg4s4) says a loan may be a regulated mortgage contract whether secured by a first, second or subsequent mortgage. It separately describes an exclusion for a limited-payment second-charge bridging loan.
For that exclusion, all listed conditions must exist when the contract is entered into. The contract must first meet the underlying regulated-mortgage conditions. It must also be a borrower-lender-supplier agreement financing the purchase of land.
The remaining conditions are that the borrower uses it as temporary finance while changing to another financial arrangement for the secured land, the mortgage ranks behind one or more other mortgages, and the borrower makes no more than four payments under the contract.
## Check the registered information
HM Land Registry's [property information service](https://www.gov.uk/search-property-information-land-registry) covers property in England and Wales. Users can download a property summary, title plan and title register.
The title register usually includes the title number, owner, last sale price, whether the property has a mortgage, and details of restrictive covenants and easements. An online copy cannot be used as proof of ownership; GOV.UK says an official copy is needed for that purpose.
## Calculate combined LTV
Use this formula:
**Combined LTV = (first-charge balance + proposed second charge) / current property value**
For a controlled GBP 300,000 property, GBP 120,000 first charge and GBP 60,000 proposed bridge, total secured debt is GBP 180,000. Dividing GBP 180,000 by GBP 300,000 gives a combined LTV of 60%.
The 60% figure is the output for those controlled inputs, not a statement of a lender's maximum combined LTV.
## Calculate the bridge cost
The [bridging loan cost calculator](/tools/bridging-loan-cost-calculator) uses monthly interest multiplied by term, plus arrangement, exit, broker, valuation and legal fees.
At GBP 60,000, 1% monthly interest for six months is GBP 3,600. A 2% arrangement fee is GBP 1,200 and a 1% exit fee is GBP 600. The controlled subtotal is GBP 5,400 before legal, valuation, broker and contingency costs.
## Test the repayment evidence
[FCA MCOB 11.6](https://handbook.fca.org.uk/handbook/MCOB/11/6.html) contains guidance for a regulated bridge expected to be repaid by a mainstream regulated mortgage. It says the lender should be reasonably satisfied that a mainstream lender will be willing to enter the contract.
The [due diligence checklist](/tools/due-diligence-checklist) covers ownership, legal prompts, condition, finance compatibility and document records. Its controlled example pauses the deal until both red checks clear and converts amber checks into conditions or price adjustments.