Christofi said non-bank lenders that commonly provide finance to property investors include specialist lenders, bridging lenders and family offices.
“Non-bank lenders are often happier to lend in smaller lot sizes and are much more open to bespoke finance deals,” he said.
“Our view is that if you want to get the most competitive finance then you need to look at all the lenders and not just the bigger banks. Many banks prioritise larger lending deals and they see that as a more efficient way of deploying their capital.”
Separate figures cited by Karis Capital show that outstanding bridging loans in the UK rose by 30% during 2025, reaching £13.4 billion, up from £10.3 billion the previous year. Bridging loans provide short-term finance and are typically used by borrowers who have limited access to mainstream bank funding.
The specialist mortgage market is forecast to grow by 68%, from £32 billion in 2023 to £54 billion by 2029. Specialist lenders generally serve borrowers with non-standard circumstances, including the self-employed and those with impaired credit histories.