How Property Investors Can Secure The Best Financing Options: 2025 Guide

The UK property market is one that continues to evolve. This includes the various financing options available to investors, where you are not buying in cash. With so many choices, and whether you’re expanding your portfolio or securing funding for a single buy to let property, it’s vital you go down the right path.

To help, here’s a starter guide on how to secure the best financing option in 2025.

Available financing options

Property investors have several routes to securing property finance. As a result, it’s important to understand these investment types – and their benefits – to find the right solution.

• Buy to let mortgages: Where you are buying a property to let to a residential tenant as their home, you will need a buy to let mortgage. A standard residential mortgage is not suitable. Lenders typically require a deposit of 25% or more. On occasion, you can put down just 15%-20% deposit, but there are fewer lenders who offer this. Mortgage rates vary based on market conditions, loan to value, and borrower profiles.
• Bridging loans: If the property you are buying is not fit to be lived in, you need to complete quickly, or you are buying to refurbish and sell on, a bridging loan is ideal. It is short-term funding, offering quick access to capital. Be aware that interest rates are applied monthly and therefore bridging loans tend to be more expensive per month than a mortgage.
• Commercial mortgages: If you are buying a property a business will operate from a commercial mortgage is the right finance solution. Commercial mortgage interest rates are typically higher than those for residential and buy to let properties, because they carry more risk to the lender.
• Development finance: Development finance is specifically for projects where you are building a property from the ground up to the roof. These loans release funds in stages, helping developers manage cash flow throughout construction.

What lenders consider: the key factors

Understandably, lenders will assess various factors before approving a loan. These factors include:

• Credit history
• Rental yield and affordability
• Deposit size
• Property type and condition

Commercial lenders often look for either wider property investment experience, or if you are running your own business from the property your industry experience.

Development lenders will want to know that a professional with development experience is involved with the project, if you don’t have it you will be expected to work with contractors who do.

Knowing these factors and being prepared increases your chances of securing the borrowing you need.

How to improve your chances of securing finance

Are you ready to get started with an application? All investors should take these proactive steps:

Work with a specialist mortgage broker

Brokers have access to a wide range of lenders – including those not available to the public. This gives investors more options. A specialist such as commercialtrust.co.uk can help investors find bespoke financing solutions to match specific needs and goals.

With expert knowledge of the market, a broker can identify the most competitive rates and terms. The result: potentially saving investors significant costs over time. They also handle the application process, reducing paperwork and ensuring all requirements are met to improve approval chances.

Organise your finances before applying

Brokers streamline the process, yes, but investors must get their financial records in order beforehand. Tax returns, bank statements, rental income proof, outstanding debts – lenders will assess all these to determine eligibility. Keeping this documentation up to date can speed up applications and enhance approval odds. A strong credit history will also make financing options more viable.

Understand your financing needs

Even with expert guidance, you should clearly understand your financial goals. Whether you need development finance or a buy to let mortgage, understanding your borrowing requirements assists brokers in finding the most suitable dealer faster. Consider factors like loan duration, potential risks, and repayment flexibility before deciding.

Ultimately, you can secure a loan that aligns with your investment plans by having a clear strategy.