A market where execution beats headline rates

For many ultra-high-net-worth borrowers, the question in 2025 isn’t “Can I raise capital?” but “Who should I partner with to execute well, fast, and discreetly?” Over the last two years, we’ve seen traditional private banks temper risk appetite and lengthen decision cycles, even for immaculate profiles. That doesn’t make banks “worse”—it simply means they have a mandate: protect balance sheets, favour stable income, and apply stress tests rigorously.

Against that backdrop, private credit has moved from the periphery to the mainstream for large transactions. Its core value isn’t merely higher leverage; it’s execution certainty: the ability to underwrite complex scenarios, coordinate across structures and jurisdictions, and complete within windows that win deals. We explored similar dynamics in our pieces on Funding Large-Scale Development Projects in 2025 and How Private Investors Finance £50M+ Projects Without Corporate Backing—the thread running through them all is simple: capital that moves at the speed of opportunity outperforms cheaper, slower money.

What private banking still does exceptionally well

A good private bank can still be an exceptional partner. Relationship-led facilities, portfolio-linked lending, and very competitive pricing remain on the table for the right borrower and asset. Where there’s clear, robust income (or stabilised rent) and a clean, easily diligenced structure, banks can deliver elegant, low-cost solutions that integrate with wealth management and custody.

But conditions apply. In 2025 we continue to see more conservative LTVs, tighter affordability overlays, and elongated credit timetables. For borrowers who prize discretion, banks also demand comprehensive disclosure and ongoing reporting. We discuss the strengths and limitations candidly in Private Bank Mortgages Explained: Benefits and Drawbacks, and we compare how “best execution” sometimes departs from “best rate” in Why Your Mortgage Broker Might Be Costing You Thousands.

Why private credit has become the go-to for complex, time-sensitive deals

Private credit funds and specialist lenders—often backed by institutional or family-office capital—underwrite around the real economics of the deal: value on completion, credible exit, quality of security, and borrower track record. They’ll take cross-collateral, recognise offshore structures, accept staged exits, and—crucially—move at a pace that wins properties and rescues timelines. If you’ve read How Fast Can Bridging Finance Be Arranged? or our explainer on What Is Bridging Finance and When Should You Use It?, you’ll recognise the same DNA: speed, structure, and certainty.

Pricing is higher than bank debt, but opportunity cost is the better metric. Paying two points more and completing in 30–45 days may create seven-figure value—especially in competitive acquisitions, planning-gain plays, or repositionings. Our case study How Willow Secured £5M Refinance for a London Developer shows how bespoke capital can unlock momentum where bank processes stall.

What truly separates the options: structure, control, and time

Structuring latitude. Private credit is engineered, not templated. Where banks favour straightforward income cover, private credit looks at the conversion of risk to value. This is why it pairs naturally with cross-asset security packages and SPV groups discussed in Cross-Collateral Property Finance in 2025 and with mixed-use or development schemes covered in Development Finance in 2025: What’s Changed.

Control of the timeline. Banks set the pace through multi-layer committees; private credit compresses the chain of command. For auction completions and hard long-stop dates, that’s decisive. See our practical notes in Short-Term Property Finance: Your Options.

Information intensity vs. discretion. Banks are data-hungry by design; private credit leans on negotiated confidentiality. For founders with complex income (dividends, carried interest, FX exposures), or expats with mosaic earnings, a bespoke route can be cleaner. We unpack income nuance in Can I Get a Mortgage with Complex Income?.

Use-cases where private credit tends to outperform

• Pre-planning or pre-stabilisation plays. Where value is still “in the making”, private credit will often accept day-one risk and price for the path to stability.

• Bridge-to-bank strategies. Execute today with private credit, then refinance to cheaper term debt post-planning or post-let. We map exits in Bridging Finance Exit Strategies in 2025 and Post-Development Refinancing in 2025.

• Complex collateral sets. Portfolios across regions, titles, and uses fit naturally within cross-collateral structures; lenders focus on portfolio equity and realistic exit waterfalls (see How to Finance a Mixed-Use Property in 2025).

• Privacy-driven transactions. Where discretion is paramount—family entities, offshore holdings, sensitive commercial negotiations—the bilateral nature of private credit is often preferable.

When private banking is still the optimal anchor

There are scenarios where bank funding should be the spine of the capital stack: stabilised assets with strong covenants; long-income assets held for generational stewardship; or borrowers who value integrated wealth services and FX/custody alongside the loan. Our The Ultimate Guide to Property Finance in the UK (2025 Edition) sets the broader context and What Makes a Good Mortgage Broker in 2025? explains why objective, whole-of-market advice is the real differentiator between “cheap” and “intelligent”.

The hybrid capital stack most UHNW borrowers now prefer

The most effective answer in 2025 is often both: senior bank debt at conservative leverage, with private credit providing stretch senior or mezzanine to reach the required LTC/LTV—subject to a clear, timed exit. The outcome is competitive blended pricing with better deal certainty. We outline those mechanics in LTV, LTC, and GDV: The Three Numbers That Shape Your Property Deal and delve into exit discipline in Why Every Bridging Loan Needs a Clear Exit Strategy.

A well-drafted intercreditor agreement, realistic cash sweep triggers, and milestone-driven covenants protect all parties—and, importantly, keep projects moving when markets wobble. For a sense of how this works in the real world, see the lessons we drew in Raising Capital for High-Value Property Redevelopments: Lessons from 2025’s Biggest Private Deals.

Choosing the right route: a practical decision framework

1. Define the critical constraint. Is it time, leverage, disclosure, or cost? If completion risk is the threat, private credit’s speed usually wins. If cost and long-term hold dominate, bank debt should anchor the stack.
2. Interrogate the exit, not just the entry. Lenders lend to exits. Map sales, refinances, or stabilisation, and pre-agree sequencing. Our piece on Development Exit Finance is a good primer.
3. Be honest about complexity. Unusual titles, planning conditions, part-commercial elements, or income from multiple sources point to lenders who are set up for complexity. Reference How to Finance a Renovation Project for how funding adapts across stages.
4. Preserve optionality. Structure today so tomorrow’s refinance is easier: seasoning, DSCR, and valuation approach all matter. We elaborate in How Mortgage Underwriting Has Changed in 2025.
5. Don’t let “rate myopia” lose the deal. A lower headline rate that arrives six weeks too late is not cheaper.

How Willow Private Finance can help

We sit between institutional discipline and entrepreneurial execution. Our role is to design and negotiate the best-fit capital stack for your project—using senior bank debt where it belongs, adding private credit where it creates value, and coordinating both to protect timelines and exits. We package complex cases so credit teams focus on the strengths that matter: sponsor quality, deliverable business plans, ring-fenced risks, and credible exits.

If you’re weighing options for a large acquisition, development, or refinancing, we’ll benchmark multiple structures quickly—bank-only, private credit-only, and hybrid—so you can see the true, risk-adjusted cost of capital and the probability of execution side by side. Where speed is critical, we mobilise bridging or stretch senior (see Unlocking Capital with Bridging Loans) and map your refinance from day one, reducing exit risk later.

We’ve done this repeatedly for UHNW clients, family offices, and developers—whether the goal is to win a competitive asset, unlock liquidity against a complex portfolio, or reposition a property through planning and refurbishment. Start the conversation early; structuring is where most of the value is created.

Frequently Asked Questions

Is private credit always more expensive than private banking?
Typically yes on the headline rate, but the effective cost depends on execution speed, leverage achieved, and value unlocked. In time-sensitive acquisitions or pre-stabilisation projects, private credit can produce a superior overall outcome despite a higher nominal rate.

Can I start with private credit and refinance into a bank later?
Yes. Many transactions are structured as bridge-to-bank: use private credit to complete or deliver milestones, then refinance into lower-cost term debt after planning, letting, or stabilisation. See our guidance on exits and post-development refinancing linked above.

Will a bank lend if my income is complex or offshore?
Sometimes—particularly via private banks—but underwriting is tighter in 2025. Private credit may be more accommodating to complex income or multi-jurisdiction assets while still planning for a later bank refinance.

Do I lose confidentiality with a bank facility?
Banks require deeper disclosure and ongoing reporting. Private credit is bilateral and can be structured with tighter confidentiality provisions, which some clients prefer.

What’s the best starting point for a £20M+ project?
Define the constraint (time, leverage, disclosure, cost), map the exit, and let us model bank-only, private-only, and hybrid stacks so you can compare certainty of close with total cost of capital.

📞 Want help navigating today’s market?

Book a free strategy call with one of our mortgage specialists.

We’ll help you find the smartest way forward—whatever rates do next.