June 2025 – Product & Rate Spotlight

Following the base rate reductions last month, and seeing as we’ve reached the halfway point of 2025, it feels like the perfect time to take stock of what’s currently  happening across the real estate finance landscape.

We’ve pulled together a snapshot of the most competitive rates and products currently available — from buy-to-let and commercial investment to development and bridging finance, including a NapeX Finance exclusive for our customers.

The Market Pulse

Firstly, a quick reminder of why the rates are as shown below following the base rate reductions. In short, political headwinds continue to inject volatility into funding costs. Lenders are counter-balancing this with higher arrangement fees to keep headline rates competitive. We are seeing the base-rate reductions start to trickle through to several products, and we are optimistic in expecting further reductions ‘if/as’ the politics start to settle more.

Quick Takeaways

1. Fees vs Rates: Many lenders are using larger fees to hold down fixed-rate coupons — always compare true cost of funds over the full term.
2. Bridging Flexibility: Sub-1 % monthly bridging is back, and our valuation-free facility can cut weeks off completion.
3. Development Upswing: Traditional banks edging to 70 % GDV is a game-changer for experienced sponsors seeking cheaper capital.

Bridging & Short-Term Finance

We’re seeing renewed momentum in the bridging space, with rates continuing to edge down. Mainstream bridging products now start from as low as 0.70% per month at up to 75% LTV, a level that aligns well with most client requirements.

For refurbishment and conversion deals, we’re arranging facilities that offer up to 80% of the purchase price on day one, with works funded in arrears, and a total facility capped at 75% GDV.

Here’s what the rest of the market is offering right now:

Also in Development Finance

We’re pleased to see innovation continuing in the development finance space, as one of our lending partners has recently launched a product designed specifically for commercial schemes, offering a seamless end-to-end facility. This allows customers to purchase and develop commercial premises, get them up and trading, and then, once certain performance metrics are met, automatically transition into a long-term commercial mortgage — all within a single facility. It’s a smart, integrated solution that brings real value to developers looking for flexibility and certainty through the full project lifecycle.

On the residential side, we’re seeing encouraging movement in the larger loan market. For residential blocks with loan sizes of £1 million and above, some lenders are now offering interest-only terms at up to 70% loan-to-value, with very competitive pricing. What makes this particularly attractive is that these lenders are valuing based on individual unit values, rather than the block’s investment value. This approach often results in significantly higher borrowing potential on refinance, making it a highly useful product for clients looking to maximise their returns.

Get In Touch

All of the above rates are correct as of end of June 2025 and are subject to underwriting, borrower profile and market movement.

Our team is constantly monitoring the market to stay ahead of rate changes and product developments. This allows us to deliver best-in-class service and tailored solutions for every client, no matter how straightforward or complex the requirement.

If you’d like to discuss any of the specific rates mentioned above or talk through funding options for your upcoming projects, we’d love to hear from you. Please don’t hesitate to get in touch.