Why Cross-Collateral Lending Is Relevant in 2025

For high-net-worth (HNW) and ultra-high-net-worth (UHNW) borrowers, property finance needs have grown increasingly complex. Large loan sizes, multi-property portfolios, and assets spread across different jurisdictions mean a single property may not always provide enough security to meet a lender’s criteria.

In these cases, cross-collateral property finance can be an effective solution. By securing a loan against multiple properties — sometimes across different countries — borrowers can unlock higher loan amounts, better terms, or access to lenders that would otherwise decline based on standard security requirements.

How Cross-Collateral Finance Works

In a standard mortgage, the lender takes a charge over one property as security for the loan. With cross-collateral finance, the lender takes security over two or more properties simultaneously. This approach increases the total equity available to support the borrowing, which can be particularly useful for:

• Funding the purchase of high-value prime property
• Releasing equity across a portfolio for new investments
• Financing multi-jurisdiction purchases through a single facility

For example, a client might secure a £10 million facility by using a London townhouse and a French Riviera villa as combined security.

Which Lenders Offer This Type of Facility

Mainstream lenders rarely offer true cross-collateral lending, especially if the assets are in different countries. This space is typically dominated by private banks and specialist lenders who can take a more bespoke approach to security.

Private banks are particularly active here, as they can integrate property lending with wider wealth management services. They may also be willing to include investment portfolios as part of the collateral mix (Private Bank Mortgages Explained: Benefits and Drawbacks).

Advantages of Cross-Collateral Lending

The main advantage is increased borrowing power. By combining equity from multiple properties, borrowers can often access higher loan-to-value (LTV) ratios in aggregate than they could on each property individually.

It can also allow for more flexible repayment structures. For example, some lenders will permit interest-only arrangements across the facility, or staggered repayment schedules that align with asset sales or liquidity events.

Risks and Considerations

While cross-collateral arrangements can be powerful, they are not without risk. If you default on the loan, all properties used as security are at risk of repossession — not just the one you are purchasing.

Additionally, releasing or selling one of the secured properties during the term usually requires lender consent and may trigger partial repayment. This can reduce flexibility if your investment strategy changes.

For multi-jurisdiction facilities, there is also the added layer of dealing with different legal systems, property laws, and currency risks (Currency Risk and Income Verification: Challenges of Foreign Income).

Case Study: Multi-Property Finance for an International Client

Willow Private Finance recently assisted a client purchasing a £7 million London property while retaining a £3 million home in Monaco. By structuring a cross-collateral facility with a private bank, we were able to use both properties as security, achieving a competitive interest rate and avoiding the need for a large cash deposit.

The facility was structured on an interest-only basis for the first five years, with repayment aligned to the planned sale of an investment property — providing maximum flexibility.

Why This Approach Suits HNW Borrowers

Cross-collateral lending works best for clients with significant equity tied up in multiple properties, particularly when those assets are in prime or ultra-prime locations. It can also suit buyers looking to move quickly on a high-value purchase without liquidating investments or triggering capital gains events.

For investors with properties in more than one country, this type of lending can also reduce the complexity of managing separate loans in each jurisdiction — as long as the lender is equipped to handle cross-border security.

How Willow Private Finance Can Help

We work with private banks and specialist lenders who are experienced in structuring cross-collateral facilities. This includes handling the legal and valuation processes across multiple jurisdictions and ensuring that loan terms are aligned with your broader financial objectives.

Whether you are purchasing a new prime residence, refinancing a portfolio, or funding multiple acquisitions at once, we can design a finance solution that maximises the value of your assets while keeping flexibility in mind.

📞 Interested in Leveraging Multiple Properties for Finance?

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

We’ll help you find the smartest way forward — whatever your plans in 2025.