A Guide to Bridging Loans at Bridging Finance Solutions in 2026
A bridging loan can be an excellent choice when you are in the process of buying a new property or require immediate access to extra funds. This type of loan can provide a flexible and effective solution in a wide range of situations, offering a bridge between short-term financial needs and longer-term goals.
For example, a bridging loan may be a great option if you are selling your home and need financial assistance to pay for your next property or simply cannot access the funds for the required deadlines.
At Bridging Finance Solutions, we have years of experience providing bridging loans to those who need them. Read on to learn more about our bridging finance options and how we can assist you with your financial needs in 2026.
What is a Bridging Loan?
A bridging loan is a short-term solution that can be used to ‘bridge the gap’ if you are looking to purchase a property before selling another or if you need to obtain funds quickly for a property-related transaction.
Bridging loans can be used as a mortgage alternative because they can be obtained quickly and require a much shorter commitment. If a bridging loan is arranged with us, you will be expected to repay it within 12 months, which can be negotiated depending on your circumstances. It is essential that there is a viable exit to repay the loan when it is time to redeem.
How Bridging Loans are Expected to Change in 2026
A common question among borrowers is how bridging loans are set to change and evolve in 2026. Though there won’t be any predicted changes to how to apply for a bridging loan or to the repayment process, there are predictions about other aspects of bridging loans.
Mainstream Use
One of the biggest predictions for bridging loans in 2026 is improved mainstream use. While bridging loans provide the financial flexibility useful in most situations, not many mainstream property buyers are aware of them, but this is believed to change in 2026.
Following the volatile property market of 2026, there is a growing demand for more flexible, faster financing solutions. There is expected to be growth in residential buyers utilising bridging loans, whereas in the past, they have mainly been used by developers looking to bridge the gap between projects.
Potential for Lower Rates
It is important to note that this does not apply to every lender, and the rates they provide are at their discretion and may be affected by factors such as the lender’s financial history, the project at hand, and the projected value of the project.
With anticipated reductions in the Bank of England’s base rate for loans, some lenders are expected to lower their rates in line with these reductions to compete with standard lenders, but this may differ between lenders and be affected by external factors.
Continued Focus on Exit Strategy
Exit strategies are expected to persist and may face even stricter conditions in the future. Exit strategy quality is set to be an even bigger focus for lenders, assuring that those who apply for bridging loans will, in fact, be able to repay them, whether that’s through sale, refinancing or another confirmed source.
At Bridging Finance Solutions, we have always considered exit strategies as essential when accepting loan applications. This is not only for our own assurance, but to ensure that anyone who takes out a loan with us does not find themselves in a challenging financial situation.
When Bridging Loans Should Be Used
If you are not sure if a bridging loan should be used in your specific circumstances, some of the situations in which using a bridging loan would be beneficial for you include:
Buying a Property at Auction
Anyone who has purchased property at auction knows you have to act quickly or risk losing out. When a property is sold at auction, it is often sold at a reduced price, making it incredibly desirable to developers looking to get a deal.
When you purchase at auction, you have just 28 days to finalise your payment, and if you don’t already have the funds available, it will be very difficult to secure the funding in time from a standard mortgage. This is where bridging loans step in. Because finance can be obtained quickly, they offer a fantastic solution for instances like this.
Purchasing an Un-Mortgageable Property
To obtain a mortgage, a property must meet certain criteria. The criteria for receiving a mortgage on a property include: a functional kitchen and bathroom, structural soundness and habitability.
If a property doesn’t meet the criteria, it is unlikely that you will be considered for a mortgage, but with bridging loans being so flexible, you may, in fact, be eligible for a bridging loan.
Improving/Renovating a Property
Because bridging loans are short-term, asset-secured loans, you have a lot more flexibility with what you can use the funding for. Bridging loans are highly useful for property improvement and renovation, especially if you need to complete your renovation quickly to release funds.
Purchasing from a Vendor
As a business, you may need to purchase goods from a vendor to resell and secure the financing needed for operations. Without the funds already in place, it can be difficult to make a purchase that helps to grow your business and secure necessary financing.
This is where bridging finance lenders such as Bridging Finance Solutions step in, working with you to develop an exit plan that allows you to repay your loan using the expected profit from a stock purchase from a vendor.
Needing a Quick Cash Injection
As any business owner will tell you, there can be a lot of financial ups and downs when you are operating a business. One month you might get plenty of sales, while another month may be incredibly slow. In these instances, having access to a quick cash injection is incredibly valuable, as it provides your business with the financial support it needs during financially challenging times.
Bridging loans can be used when there are expectations that business will pick up again and can provide temporary relief until you are able to generate the profits necessary to continue standard operations.
Transitional Periods in your Business
Another common reason for taking out a bridging finance loan is if you are in the transitional period between purchasing and selling a new property and have been let down by a prospective buyer, traditionally known as chain breaking.
A bridging loan can provide you with the funds you need to proceed with your purchase.
Speed is the main reason people choose to take out a bridging loan, as it can be arranged at very short notice. Bridging Finance Solutions doesn’t answer to a third party; we can provide loans quickly.
Which Bridging Loans Do We Offer?
At Bridging Finance Solutions, we are at the forefront of bridging finance because we offer loans to fit any circumstance. As a principal lender, we have the resources to process your loan requests quickly and provide funds to you as soon as possible.
No two circumstances are the same, and we pride ourselves on being able to deliver financial assistance in various situations.
Development Finance
If you are a property development professional, we can offer residential development finance for your next project.
Our property development loans start from £50,000 and can extend to £2,000,000. They can be used for property development, house clusters, permitted development schemes, and developments built from the ground up.
Capital Release Bridging Loans
Though the typical use of a bridging finance loan is property investment, there are other circumstances in which we can provide the required funds. Capital release bridging loans provide a cash injection into a business. If you are equity-rich but cash-poor, a bridging loan could offer you the solution you need.
Some reasons you may require an emergency cash injection include:
- Emergency restock.
- Tax payments.
- VAT payments.
- Temporary cash flow issues.
- Divorce settlements
- Inheritance Tax
Probate Bridging Loans
Losing a family member is never easy, and the last thing you want to worry about during that difficult time is your financial situation.
Losing someone can be expensive; with funeral costs, legal fees, and inherited debt, it can be easy to become financially overwhelmed, and this is where we help.
Our probate loans work the same way as our standard bridging loans and will be secured against a property; we can discuss the terms with you and determine what you need to meet your financial needs, offering anywhere between 1 and 12 months to make repayment.
We understand how difficult dealing with probate can be, so we are open to discussing extending your repayment time. We always take a people-first approach and create a structured repayment plan that fits a repayment schedule you can manage.
Tax Payment Bridging Loans
A bridging loan may be the right solution if you have time-critical debts that you need to repay and want to avoid untrustworthy payday loans and schemes. It can also offer a quick solution if you are waiting for finances to be released from another property or sale.
There are a lot of associated risks that come with not paying a tax bill on time, so a tax payment bridging loan can buy you some much-needed time to re-arrange your finances.
Short Term Cash Flow
Bridging loans are often misconstrued as only being available for property transactions. However, they can also provide financial assistance to any organisation experiencing a short-term cash flow problem.
There is no shame in needing financial assistance, as circumstances can change, and you may experience a financial gap in your business needs.
A bridging loan can be a great option while you uncover a more permanent solution for your financial problems.
Regulated and Unregulated Bridging Loans
When applying for a bridging loan, you must consider whether you will need to apply for a regulated or unregulated loan.
The Difference Between Regulated and Unregulated Loans
The main difference between regulated and unregulated loans is that the Financial Conduct Authority governs regulated bridging loans.
Regulated loans are usually secured against residential property, whereas unregulated loans are usually secured against commercial or investment properties.
Auction Finance
If you are looking to purchase a property below the standard market price, a good option is to purchase it at auction. Initially, purchasing a property for a lower than market price could lead to higher profits, so it isn’t surprising that people buy at auction.
Though there are lots of advantages to purchasing a property at auction, you are usually under much stricter time constraints in terms of securing the necessary funds to complete the purchase.
At the very least, you are expected to pay a deposit on the day of purchase, and you will usually only have 28 days to complete the purchase. Very rarely can a property be purchased at auction using traditional mortgage methods.
If you are dependent on selling another property to finance the purchase of your auction property, you may run into difficulties operating under such strict time constraints.
Bridging Finance Solutions can help you raise the funds you require through auction finance to complete the transaction within the required timeframes.
How Long Does a Bridging Loan Take With Bridging Finance Solutions?
Bridging Finance Solutions aims to approve applications as quickly as possible. We often provide funds to clients within ten days of application.
Bridging loans can be arranged in as little as 5-10 days, depending on your preparedness. We have completed funding in less than 48 hours in the past, so we are more than equipped to offer you the timely financial assistance you need.
If you want the process to run smoothly, ensuring you have the correct documentation prior to submitting your application will allow us to process the application faster. Give us a call, and we can walk you through the process.
The Benefits of Taking Out a Bridging Loan
Some benefits of taking out a bridging loan with Bridging Finance Solutions include:
Fast Access to Funds
One of the most significant advantages of taking out a bridging loan is its quick access to funds. If you were to take out a traditional mortgage, you could wait months for the loan to be completed.
A bridging loan can be obtained in a few days, making it ideal for quickly settling financial difficulties. When you are experiencing financial problems, waiting around for money is the last thing you want to experience, and with us, you don’t have to.
Alleviate Funding Gaps
People experiencing financial gaps can drive themselves further into debt, so having a solution such as a bridging finance loan can create a short-term answer until a property is sold or an investment is realised.
Creates More Property Purchasing Potential
When applying for a mortgage, the property must be habitable, which creates limitations if you want to purchase a property with no kitchen or bathroom facilities.
By applying for a bridging loan, you have much more flexibility regarding the type and condition of the property you wish to purchase.
Apply For a Loan With Bridging Finance Solutions
If you want to know more about what to expect from a bridging loan or whether you fit the application criteria, contact our team today, and we can discuss your eligibility.
BFS can make it happen for you.
