Bridging finance in 2026: more capital, sharper execution

Capital capacity is not the same as market volume

Bridging Loan Directory’s weekly round-up presents two contrasting signals. TAB has added a £200m GB Bank facility alongside its existing £500m AB CarVal funding line, while Together has reported record annual lending of £3.5bn. Yet Octane Capital forecasts that BDLA-member bridging completions will fall 20% to £8bn in 2026, despite a gradual recovery from the first quarter.

This distinction matters. Greater lender capacity can support competition and product expansion, but it does not automatically translate into higher transaction volumes. For developers and investors, the practical question is not simply whether capital exists. It is whether a proposal fits current credit criteria, offers a credible repayment route and can withstand detailed scrutiny around value, delivery and timing.

Execution remains a central differentiator

Several transactions reported by Bridging Loan Directory demonstrate the importance of speed. Hampshire Trust Bank completed a £16.9m facility for a 105-bed care home development in six weeks. Recognise Bank completed two hotel bridging refinances totalling £5.35m within 30 days of the initial enquiry, while MS Lending Group completed a £4m business-purpose bridge six days after valuation.

These cases indicate what coordinated execution can achieve, rather than establishing a standard timetable for the market. Complexity, valuation, legal work and the quality of the information supplied will continue to influence delivery. Borrowers seeking time-sensitive finance therefore need to treat preparation as part of the funding strategy. A clear structure, complete supporting information and early identification of potential issues can be as important as lender appetite.

Exit planning is becoming more visible

The round-up also highlights how short-term and long-term capital can work together. Roma Finance completed its first commercial mortgage through a £2.4m development-to-term refinance, moving a completed commercial development onto a 15-year mortgage. Wavensmere secured a £14.7m BLME refinancing for a completed 103-apartment build-to-rent scheme in Derby, enabling the business to retain the building.

These transactions reinforce the value of defining the intended exit before short-term debt is arranged. A sale, plot disposal, refinance or transition onto an investment facility will each require different evidence and timing assumptions. Exit optionality may therefore become increasingly important where sales periods, development programmes or stabilisation schedules are uncertain.

Specialist assets require specialist structuring

The week’s activity spans care, hotels, mixed-use property, build-to-rent, agricultural land and auction purchases. Paragon’s £44.8m financing for an over-55s development and Hampshire Trust Bank’s care home facility show meaningful activity in operational and needs-led residential sectors. Other cases demonstrate the use of existing assets as security, including a £200,000 facility against an existing buy-to-let property ahead of an auction purchase.

For financing markets, this breadth supports a role for lenders able to assess more than conventional residential security. For borrowers, however, a wider range of available structures also makes lender selection more consequential. Asset type, planning status, income profile, borrower experience and proposed exit can materially alter which part of the market is appropriate.

What borrowers should take from the week

• Large funding lines indicate capacity, but approval remains transaction-specific and dependent on credit quality.

• Fast completions are most relevant as evidence of operational capability, not as guaranteed delivery times.

• Development, bridge and term finance should be considered as connected stages where retention or refinancing is planned.

• Non-standard and operational assets require a funding proposition aligned with their particular risks and cash flows.

Overall, Bridging Loan Directory’s round-up suggests a market with substantial capital resources, active product development and demonstrated execution. At the same time, the forecast fall in 2026 completions points to a more nuanced environment. The opportunity for developers and investors lies in presenting financeable transactions with realistic timelines, defensible values and clearly evidenced exits.