Mortgages, Markets, and Momentum: Holly Andrews on What’s Really Driving UK Property Finance in 2025

Holly Andrews began her career in finance back in 2007 and has led KIS Finance as Managing Director since 2015. With decades of hands-on experience in mortgages, property investing, and bridging finance, she brings a sharp understanding of how the UK market really moves.

Today, we spoke with Holly to unpack the current state of UK property finance – what’s changing, where the pressure points are, and what buyers and investors should keep in mind as 2025 unfolds. Let’s look at what she has to say.

How has the UK mortgage market evolved post-COVID? Are first-time buyers in a better or worse position today?

Due to significant and rapid increases in mortgage interest rates, many first-time buyers have faced challenges. These include higher monthly payments and difficulties in borrowing sufficient funds, as lenders have reduced borrowing limits. In some cases, both issues have occurred simultaneously.

However, in recent months, interest rates have fallen. This, combined with lenders taking steps to increase borrowing limits and the emergence of a potential buyers’ market, has placed first-time buyers in a better position to purchase their homes.

What’s the most common mistake you see people making when they apply for a mortgage?

One of the most common mistakes I see – and it still surprises me – is people forgetting to check their credit reports properly before applying. I’m not talking about just glancing at the score. I mean actually going through the report line by line to spot old accounts, missed payments they didn’t realise were recorded, or even incorrect addresses.

I once had a client declined because their report still showed a joint account with an ex from years ago that had a string of missed payments they knew nothing about. That kind of detail can throw everything off, especially when lenders are tightening criteria. It’s such a simple step, but people skip it all the time thinking their score alone tells the full story.

What advice would you give to someone investing in property for the first time?

Go in with a long-term mindset. Don’t expect instant returns or get caught up chasing short-term gains. 

Property prices move in cycles – there’ll be dips, unexpected costs, maybe a void period or two – but if you’ve bought sensibly and manage it well, it usually pays off over time. I always say, treat it like a business. Do your due diligence on the area, understand rental demand, and make sure you’ve factored in things like maintenance and insurance. 

Simply put, don’t just think about what it’s worth today – think about where it’ll be in ten years.

If you were Chancellor for a day, what’s the first financial policy you’d change? 

Stamp Duty on investment and additional properties.That 3%–5% extra charge adds up fast and creates a real barrier, especially for smaller investors and developers who don’t have endless cash reserves. What people forget is that this extra cost can’t be used as equity or counted as part of the loan security – it’s just money out the door. 

So every purchase demands significantly more upfront capital, which squeezes margins and slows down projects. I’ve seen developers walk away from perfectly viable sites purely because the Stamp Duty hit made the numbers unworkable. And when fewer people invest, the wider market feels it – reduced competition, stalled developments, and ultimately, lower property values. It’s counterproductive.

Which parts of the UK are currently seeing the highest demand for bridging finance?

Midlands, London and Kent. London’s always been a hotspot, but activity there has cooled slightly compared to a few years ago—likely due to tighter planning, higher entry costs, and a bit more caution among investors. 

The Midlands, on the other hand, has picked up noticeably. More developers are targeting areas like Birmingham and Nottingham, where there’s strong rental demand and more affordable property stock. 

Kent’s also stayed busy, especially with buyers and developers looking for quicker completions outside of central London.

How did COVID affect property financing, and would you say the market has fully recovered?

COVID and in particular, the UK lockdown restrictions had a huge impact on the economy. The Financial Services sector, including property financing was no exception. The challenges presented by COVID led to lenders significantly limiting their products and tightening borrowing polices to try and mitigate potential customer detriment.

Although other impacts to the market have occurred since COVID, namely Trussonomics and the Ukraine/Russia war – the market does seem to have significantly recovered to pre-COVID days. The second charge market is representative of this. In the 12 months up until February 2020 (the final full month pre-COVID restrictions) – 33515 second charge agreements were completed. 

In the 12 months up until February 2021, the level of business was at 15417, a 46% contraction in the market. The 12 months up until February 2025 shows 36267 second charge agreements completing, demonstrating the market has fully recovered and continuing to grow further.

COVID-19 served as a catalyst for significant and rapid adjustments in property financing. While some of these changes positively impacted the housing market, poorly considered economic decisions following the end of lockdown, coupled with rising interest rates, led to higher monthly mortgage payments, and reduced borrowing capacity for applicants.

Although the housing market has rebounded significantly, confidence remains cautious. With the imminent changes to stamp duty, transaction times have lengthened due to processing pressures. Activity and progress still have a long way to go to fully fuel growth.

What’s the biggest challenge for bridging finance this year? 

Trump and the uncertainty he brings. Markets hate unpredictability, and his return has created exactly that. We’re already seeing nervousness around interest rates, which makes short-term lending more sensitive. Job security worries are creeping in too, and when people feel uncertain about their income, they hesitate to borrow or invest. 

On the business side, many developers and investors are pressing pause, waiting to see how things settle. Tariffs and trade shifts could also trigger cost increases, which fuels inflation and squeezing margins further.