The UK has long been a magnet for international capital. Prime London townhouses, countryside estates, and landmark developments continue to attract high-net-worth investors from across the globe. Yet while appetite for UK property remains strong in 2025, arranging finance has not always been straightforward for overseas buyers.

Traditional mortgages rely heavily on UK-based credit history, income verification, and affordability assessments — all of which can be problematic for clients whose wealth is structured internationally. Even high-net-worth individuals with substantial global portfolios can face barriers when attempting to secure property finance through conventional means.

This is where Securities Backed Lending (SBL) offers unique cross-border advantages. By pledging an international portfolio of equities, bonds, or funds, investors can unlock liquidity for UK property purchases without relying on local credit files or income structures. SBL is proving to be a critical bridge between global wealth and UK property markets.

How Cross-Border Securities Backed Lending Works

At its simplest, cross-border SBL allows an investor with assets in one jurisdiction to access lending in another. A client might hold a $20 million portfolio managed by a US private bank, yet wish to acquire a £5 million property in London. By pledging the US-based assets as collateral, the client can secure liquidity in the UK, often in sterling, without the need to transfer or liquidate those holdings.

This flexibility has made cross-border SBL an attractive alternative to conventional international property finance. Unlike traditional mortgages, where lender scrutiny often centres on income and tax residency, SBL focuses on the portfolio itself. The result is a streamlined process with fewer barriers, particularly for ultra-high-net-worth families and family offices with diversified global holdings.

Why International Investors Are Turning to SBL

There are several reasons why SBL is becoming a preferred tool for international property buyers in 2025.

First, speed. For overseas clients competing for prime property in London or the Home Counties, certainty of funds is critical. SBL can often be arranged far more quickly than traditional mortgage facilities, allowing buyers to act with the confidence of a cash purchaser.

Second, flexibility. Where many mortgages are tied to a specific property and purpose, SBL facilities can provide general liquidity. Borrowers may use the funds for acquisitions, deposits, or even bridging a deal until long-term finance is arranged. This flexibility mirrors the appeal of short-term finance but with global assets as the security base.

Third, tax efficiency. Selling down portfolios to release liquidity can crystallise capital gains or disrupt investment strategies. SBL allows investors to maintain exposure to growth while unlocking liquidity, a particularly important factor for US taxpayers or investors in jurisdictions with high capital gains regimes.

Finally, cross-currency access. In a volatile FX environment, many overseas investors see UK acquisitions as a hedge or diversification. SBL enables them to borrow in sterling against dollar or euro portfolios, aligning liquidity with acquisition currency and reducing exchange risk.

Cross-Border Case Study

Take the example of a Middle Eastern family office with a €50 million portfolio managed in Switzerland. They identify a £10 million mixed-use development opportunity in London. Traditional property finance would involve lengthy underwriting, including analysis of international income streams and local SPV structures.

Instead, the family pledges part of the Swiss portfolio and secures a £7 million SBL facility through a private bank. The facility is advanced in sterling, enabling immediate acquisition. Within 18 months, once planning approval is obtained, the SBL is refinanced into a development finance package, with the portfolio released.

This hybrid approach demonstrates why cross-border SBL is becoming a key tool: it combines liquidity, flexibility, and speed without disrupting international wealth structures.

Risks in Cross-Border SBL

While the advantages are clear, borrowers must also be mindful of the risks.

The most significant is regulatory divergence. SBL facilities may be treated differently across jurisdictions, particularly regarding collateral management, reporting, and client protections. Borrowers should be clear about how local rules apply when assets and lending cross borders.

Currency volatility is another consideration. Borrowing sterling against a dollar or euro portfolio may reduce immediate FX risk for the purchase, but it creates an exposure if the loan needs to be serviced or refinanced in a different currency environment.

Borrowers must also remain conscious of portfolio eligibility. Not all securities are accepted across jurisdictions. Some international holdings may be considered too illiquid or volatile, reducing available loan-to-value.

Finally, margin calls remain a universal risk. If portfolio values fall, the lender may demand additional collateral or partial repayment, regardless of where the assets are held. Clients must ensure they have liquidity buffers to withstand such events.

Cross-Border Lending Trends in 2025

Several developments are shaping the cross-border SBL market this year.

• Global private banks are expanding offerings: Many institutions now provide multi-jurisdiction lending desks, enabling clients to borrow in London against assets held in New York, Geneva, or Dubai.

• Specialist lenders are entering the market: Where private banks are cautious, boutique lenders are stepping in, particularly for clients with unconventional portfolio structures or alternative assets.

• Increased use by family offices: With wealth becoming more global, family offices are using SBL as part of broader strategies that combine trust-based finance with property acquisition.

• FX as a driver: Fluctuations in sterling continue to create windows of opportunity. Cross-border SBL allows clients to act quickly when exchange rates move in their favour.

Comparing Cross-Border SBL to Other Solutions

Compared with traditional mortgages, cross-border SBL offers speed, discretion, and fewer hurdles. Where expat buyers often struggle to prove income or meet affordability checks, SBL bypasses these issues entirely.

Compared with bridging finance, SBL avoids property as collateral, freeing investors to move quickly without encumbering other holdings.

And compared with margin loans (as we explored in the previous blog), cross-border SBL provides broader flexibility of use and a more measured risk profile.

How Willow Can Help

At Willow Private Finance, we specialise in arranging securities backed lending facilities for international clients. We work with leading private banks and boutique lenders across multiple jurisdictions, ensuring portfolios are assessed accurately and that facilities are structured in a way that aligns with both property objectives and wider wealth planning.

Our experience spans working with US, European, Middle Eastern, and Asian clients who wish to acquire UK property. We understand the interplay between portfolio eligibility, currency considerations, and cross-border tax implications. Whether funding a £2 million purchase in Mayfair or a £50 million development in Zone 1, we ensure facilities are delivered quickly, efficiently, and strategically.

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