Using investment portfolios to buy property has become increasingly common among high-net-worth buyers, international clients, and sophisticated investors. In 2025, with interest rates stabilising but affordability rules remaining tight, many borrowers are turning to asset-backed lending as a more flexible route to raising capital.

The shift is being driven by lender behaviour as much as borrower strategy. Banks and specialist lenders have become more open to the idea of using listed investments, bonds, structured notes, and even pre-IPO stock as security—provided clients meet the right risk profile. For some, this avoids the need to liquidate long-term investments or trigger unwanted tax events.

At the same time, underwriting has become more nuanced. Portfolio-backed borrowing is no longer reserved exclusively for private banks; mainstream lenders and specialist institutions are increasingly offering such structures, although criteria vary significantly. Understanding how banks assess assets, liquidity, leverage, and performance is critical.

Willow Private Finance regularly works with clients whose primary wealth sits in investment portfolios rather than earned income. From London-based executives with complex remuneration packages to international families with multi-jurisdictional holdings, asset-based borrowing is often a smarter route than traditional affordability-led lending. Related topics such as how wealthy buyers borrow using assets instead of income and how high-net-worth lenders structure £5m+ mortgages provide helpful background for borrowers exploring flexible finance options.

This guide explains exactly how lenders look at investment portfolios in 2025, what counts as acceptable security, how loan sizes are calculated, and the strategies affluent borrowers can use to leverage investments without disrupting long-term financial plans.

Market Context in 2025

The lending landscape in 2025 is shaped by three major trends: stabilising interest rates, evolving affordability rules, and increased demand from wealthy international buyers seeking UK property as a long-term asset.

Interest rates remain higher than the lows of the early 2020s, but volatility has eased. Lenders are increasingly focused on asset sustainability rather than short-term cashflow. This has created a favourable environment for asset-rich clients, particularly those with liquid investment portfolios.

Affordability testing remains strict for mainstream lenders, especially since regulators continue to encourage risk-aware underwriting. For traditional borrowers, this can restrict maximum loan size. However, banks recognise that high-net-worth clients often have wealth tied up in non-income-producing assets such as equities or bonds. As a result, lenders have widened their appetite for portfolio-backed borrowing.

The demand for premium property, especially in London, continues to rise among global buyers. Many of these clients hold diversified portfolios across multiple markets and asset classes. Portfolio-led funding allows them to acquire UK real estate without triggering large capital gains taxes in their home jurisdiction or liquidating long-term holdings.

These dynamics make 2025 one of the most favourable environments in recent memory for asset-backed property finance.

How Portfolio-Backed Property Finance Works

Portfolio-backed mortgages allow borrowers to use their investment portfolio as collateral instead of—or alongside—traditional income-based affordability.

The structure usually works in one of three ways:

1. A Lombard loan
This is a credit facility secured directly against the value of a portfolio. The borrower retains ownership of the investments but grants the lender a charge. The bank lends a percentage of the portfolio value—known as loan-to-value, or LTV.

2. A pledged-asset mortgage
Here, the investment portfolio acts as a secondary guarantee for the mortgage. It reduces the lender’s risk and can allow higher borrowing or more favourable interest rates.

3. A liquidity line or revolving credit facility
Clients draw down funds secured against their investments. These funds can then be used for the deposit, the purchase itself, or to strengthen affordability on the main mortgage.

In all cases, the borrower avoids selling assets. This is particularly attractive for clients who wish to maintain long-term investment strategies or avoid the tax implications of crystallising gains.

One key advantage is speed. Portfolio-backed arrangements can often be put in place far quicker than traditional income-verified loans. This makes them attractive in competitive markets or when securing opportunities such as off-market property or tight completion windows.

What Lenders Are Looking for in 2025

In 2025, lenders focus heavily on the quality, liquidity, and stability of the investment portfolio. They want to know that the assets can withstand normal market movements without forcing urgent repayment or margin calls.

Private banks typically accept:

• Listed equities
• Government bonds
• Corporate bonds
• Managed portfolios
• ETFs
• Money market funds
• Certain structured products

They tend to be more cautious with:

• Single-stock holdings
• Pre-IPO shares
• High-volatility assets
• Derivatives
• Crypto or digital assets (usually excluded entirely)

Lenders will review the portfolio’s historic performance, volatility, diversification, and liquidity. A well-diversified portfolio with low drawdown risk supports higher borrowing.

Another important factor is jurisdiction. Some lenders restrict portfolios held in offshore structures or with certain investment houses. Others require the portfolio to be moved under their management before lending, which can have advantages such as better LTVs but may not suit all clients.

Income still plays a role, but for many high-net-worth individuals, portfolio value carries more weight. Lenders increasingly accept asset-rich, low-income profiles—particularly where the client meets high-net-worth exemptions under FCA rules.

Challenges Borrowers Face When Using Investment Portfolios

Despite the flexibility of asset-backed borrowing, it comes with specific challenges.

One is that not all lenders are comfortable with complex or highly concentrated portfolios. Some private banks will decline assets that fall outside their risk appetite, even if their headline value is substantial. Borrowers with emerging-market equities, alternative investments, or family-office-managed portfolios may find fewer options.

Another challenge is the potential requirement to transfer the portfolio to the lending bank. While this can unlock better borrowing power, moving investment management has implications for fees, strategy, and control. Some clients prefer to keep their portfolio with their existing advisor or wealth manager.

Market volatility is also a consideration. Lenders typically build in cushions—such as lending only 50–60% of portfolio value—to mitigate risk. However, sharp market drops could trigger margin calls or require additional collateral. Borrowers must understand where thresholds sit and how much headroom they have.

International clients also face documentation and compliance hurdles. Proof of source of wealth, tax residency, and regulatory status can be more complex for clients with multi-jurisdiction portfolios.

Finally, borrowers often underestimate how differently lenders treat various assets. Two portfolios with the same headline value can produce dramatically different lending outcomes depending on their composition.

Smart Strategies for Borrowers in 2025

Borrowers with significant investments can position themselves for better outcomes by taking a strategic approach.

One effective strategy is using a portfolio-backed facility for the deposit while securing a separate mortgage for the remainder of the purchase. This preserves liquidity without over-leveraging the portfolio and can be particularly useful for buyers who want to keep cash invested.

High-net-worth clients often combine portfolio pledges with private bank mortgages to achieve more flexible repayment structures. These can include interest-only terms, multi-currency loans, or longer amortisation periods. This approach is very common among affluent overseas buyers, as seen in our related guide on mortgages for international buyers.

For clients with multi-country income streams, a hybrid structure may be appropriate. Using a mix of income-based borrowing and portfolio-based security can unlock higher overall lending while maintaining global wealth planning objectives. Our article on multi-country income mortgages explores this area further.

Some borrowers also choose to restructure their portfolio before applying—moving assets into more stable holdings, reducing concentration risk, or increasing liquidity. This can significantly improve lender appetite.

The key is to prepare early and understand which lenders align best with the borrower’s asset profile, jurisdiction, and long-term intentions.

Typical High-Net-Worth Hypothetical Scenario

A typical scenario involves a London-based client with £3–£10 million held across a managed investment portfolio. Their income may fluctuate year to year due to performance bonuses, carried interest, or entrepreneurial activity. From a traditional lending point of view, this inconsistent income would limit borrowing capacity.

However, the client’s portfolio offers strong liquidity, stability, and long-term performance. A private bank may offer a Lombard loan covering up to 60% of the portfolio value, which could be used for the property deposit or even the entire purchase.

Alternatively, the bank may structure the asset as a pledge, allowing an interest-only mortgage with significantly enhanced borrowing power. For clients purchasing at the £2–£10 million level, this structure has become especially common in 2025, particularly among overseas buyers with wealth held abroad.

Scenarios like this demonstrate why asset-based borrowing has become a central pillar of high-value property finance.

Outlook for 2025 and Beyond

Asset-backed lending is expected to expand further into 2026 as banks compete for wealthy clients and affluent international buyers. However, lenders will remain highly selective about the types of portfolios accepted.

We anticipate that:

• Portfolio-backed LTVs will remain broadly stable.
• More private banks will offer dual-currency mortgage structures.
• Lenders will place a greater emphasis on portfolio volatility metrics.
• Regulatory developments may further support high-net-worth exemptions.

Borrowers who understand how lenders evaluate portfolios and prepare in advance will be best positioned to secure competitive, flexible finance in the coming year.

How Willow Private Finance Can Help

Willow Private Finance specialises in high-value, asset-backed lending for UK and international clients. Our team works with private banks, specialist lenders, and wealth-focused institutions to secure bespoke funding structures based on investment portfolios, complex incomes, or multi-jurisdictional assets.

We help clients navigate underwriting rules, negotiate favourable LTVs, and structure lending in a way that aligns with their long-term investment strategy. Whether you hold assets in the UK, Europe, the Middle East, Asia, or offshore jurisdictions, we can position your profile effectively across the whole of the market.

Frequently Asked Questions

Q1: Can I use my investment portfolio instead of income to get a mortgage in 2025?
Yes. Many private banks and specialist lenders allow borrowers to secure lending based on portfolio value rather than earned income, provided the assets meet liquidity and stability requirements.

Q2: What types of investments will lenders accept as security?
Most lenders accept listed equities, bonds, ETFs, and managed portfolios. Higher-risk assets like crypto, derivatives, or concentrated single-stock holdings are usually excluded or heavily discounted.

Q3: Do I need to move my investment portfolio to the lending bank?
Some lenders require this, while others are happy to lend against portfolios held elsewhere. Moving the portfolio may unlock better LTVs but comes with implications for fees and investment strategy.

Q4: What LTV can I expect when borrowing against my portfolio?
Typical LTVs range from 40–60% depending on volatility, liquidity, and diversification. Lower-risk portfolios generally attract higher lending multiples.

Q5: Can international clients use overseas portfolios for UK property purchases?
Yes, provided the lender is comfortable with the jurisdiction, documentation, and asset management structure. Some banks specialise in multi-jurisdiction portfolios.



Q6: What are the risks of portfolio-backed borrowing?
The main risk is market volatility. If the portfolio drops below agreed thresholds, you may be required to repay part of the loan or provide additional collateral.

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