In 2025, more buyers than ever fall into the “asset-rich, cash-poor” category—individuals who hold substantial wealth in property, investments, or business equity but have limited provable income. Rising interest rates, tighter stress-testing, and changing regulatory requirements have made this profile more common, particularly among retirees, entrepreneurs, and high-net-worth individuals with complex or irregular income.

Traditional lenders often struggle with these cases. Standard affordability rules focus heavily on guaranteed income, which means a buyer with £5 million in assets but modest taxable income may technically “fail” mainstream affordability models. This is where specialist underwriting, private banks, and wealth-based structures become essential.

Willow Private Finance works extensively with clients in this exact position, structuring solutions that blend assets, liquidity options, and lender-specific approaches. Similar strategies are often used in cases involving high-net-worth mortgages and borrowing using investments instead of income.

This article explores how the 2025 lending landscape supports asset-rich, cash-poor buyers—and what solutions Willow can help craft to secure approvals that traditional brokers often cannot.

Market Context in 2025

By 2025, the UK mortgage market is shaped by higher “new normal” interest rates, stricter affordability stress tests, and lenders placing increased scrutiny on income sustainability. These changes have made it harder for buyers with modest earnings to pass conventional affordability checks, even when their net worth is substantial.

Private banks, specialist lenders, and select building societies have responded by expanding “wealth-based” underwriting models. These lenders recognise that many affluent buyers generate wealth outside conventional salary structures through capital growth rather than income.

At the same time, regulatory pressures have pushed mainstream banks to maintain tighter affordability rules. As a result, the gap between what a standard lender will accept and what a private bank can offer has widened—reinforcing the importance of bespoke advice for wealthy buyers.

For buyers who are asset-rich but income-constrained, the opportunities in 2025 are better than they initially appear, provided their wealth profile aligns with lender appetite.

How Asset-Based Lending Works

Asset-based lending is not a single product but a broad category covering several underwriting approaches. The core principle is that lenders use the borrower’s assets—not just their income—to support the loan decision.

Although private banks do not ignore income entirely, they interpret affordability through a far wider lens than high-street lenders. They are comfortable structuring loans around liquidity events, investment portfolios, property wealth, or family assets—provided the overall financial position is strong.

These approaches can make a significant difference for entrepreneurs, retirees, and buyers with strong balance sheets but inconsistent, deferred, or low taxable income.

What Lenders Are Looking For

Lenders who work with asset-rich, cash-poor applicants focus on several key areas.

1. Net Worth and Asset Composition

The stability, liquidity, and diversity of assets matter. A client with £10 million in listed equities is assessed differently from someone with £10 million tied up in a single company.

2. Liquidity Options

Lenders ask: Can the borrower raise cash quickly if needed?

This includes:

• Investment drawdown
• A credit line secured against a portfolio
• A planned disposal or liquidity event
• Access to family wealth or trust distributions

3. Sustainability of Wealth

Underwriters evaluate whether the borrower’s wealth will reasonably maintain the property long-term, even in the absence of significant income.

4. Exit Strategy

Where income is limited, lenders often require a credible exit route—sale of another property, a future inheritance, or a planned business disposal.

5. Professional Presentation of Assets

This is where most clients struggle and where Willow adds the most value. Private banks expect assets to be presented in a structured, comprehensive format that demonstrates stability. Poorly organised documentation often results in slower or declined applications.

Challenges Buyers Face

Misalignment with High-Street Criteria

Standard lenders remain income-driven. Applicants with volatile or low provable income—even with substantial wealth—may be automatically declined.

Complex Assets Require Specialist Packaging

Private banks require detailed documentation, including valuations, statements, trust deeds, and liquidity analyses. Clients rarely have this prepared in a lender-ready format.

Timing Issues Around Liquidity Events

Wealth is often locked away, such as in a business sale, investment maturation, or inheritance timeline. Lenders need clear evidence—not assumptions—of how and when capital will be available.

Underestimating Stress-Testing

Even wealth-friendly lenders run affordability models. If income is near zero, underwriting must rely heavily on assets and exit strategies, often requiring bespoke negotiation.

Smart Strategies That Work in 2025

Using Investment Portfolios

Many private banks will accept listed investment portfolios as either:

• Direct security (Lombard lending)
• A basis for interest-only terms
• A source of drawdown to supplement affordability

This can dramatically increase borrowing power.

Leveraging Other Property Assets

Buyers can use:

• Unencumbered property as security
• Low-LTV properties as cross-collateral
• Future sales to justify temporary borrowing

This is effective for clients with large portfolios but limited cashflow.

Structured Facilities and Credit Lines

Portfolio credit lines—similar to the solutions discussed in Willow’s blog on using credit lines to buy UK property—allow clients to create income on paper or demonstrate viability during underwriting.

Family Asset Support

Gifted deposits, trust distributions, or family guarantees play a role for many wealthy buyers, particularly where inheritance or family wealth is substantial but not yet liquid.

Interest-Only and Part-Repayment Structures

Where cashflow is genuinely limited, private banks may allow:

• Full interest-only
• Hybrid repayment
• Deducted-from-assets repayment plans

These structures are common in London prime purchases and high-value country homes.

Hypothetical Scenario

A typical profile might involve a client with a multi-million-pound property portfolio and significant investment holdings but minimal taxable income due to reinvesting profits or operating through tax-efficient structures.

Using cross-collateral, partial portfolio pledges, and evidence of liquidity within three to five years, Willow might structure an interest-only private bank loan with bespoke affordability modelling—an approach unavailable on the high street.

Another common scenario involves retirees with £3–£8 million in assets but limited pension income. Here, asset-drawdown modelling, listed investment mandates, and low-LTV lending allow approvals that standard banks cannot achieve.

These are not unusual cases—they form a significant portion of private bank lending in 2025.

Outlook for 2025 and Beyond

Asset-based lending is set to grow as wealth patterns continue shifting away from traditional salaried income. More entrepreneurs, portfolio landlords, and retirees rely on capital appreciation rather than regular cashflow, and lenders are adapting accordingly.

The rise of private banking, specialist underwriting, and tech-driven wealth analysis means approvals will increasingly depend on the quality of financial packaging rather than income alone.

Buyers with strong balance sheets but low income will continue to access substantial borrowing—provided they work with advisers who understand how to structure their wealth for lender review.

How Willow Private Finance Can Help

Willow Private Finance specialises in complex, high-value, and asset-led borrowing. Many of our clients have significant wealth across property portfolios, investments, company shares, or trusts but fall outside traditional affordability rules.

We work with private banks, specialist lenders, and international institutions to structure mortgages that reflect financial reality—not rigid salary multiples. Our team packages assets professionally, prepares liquidity strategies, and negotiates bespoke underwriting terms on your behalf, often achieving approvals that standard brokers cannot.

If your wealth is substantial but your income is not, we can help you secure the property finance you need.

Frequently Asked Questions

Q1: Can I get a mortgage if I have significant assets but very low income?

A: Yes. Private banks and specialist lenders frequently approve mortgages for asset-rich, cash-poor buyers using wealth-based underwriting, provided the overall asset position is strong.

Q2: What assets do lenders consider for affordability in 2025?

A: Listed investments, property portfolios, cash reserves, business shareholdings, and trust assets may all be considered depending on the lender and documentation quality.

Q3: Can investment portfolios be used instead of income?

A: Many private banks accept investment portfolios as collateral, proof of wealth sustainability, or a liquidity source, significantly improving borrowing potential.

Q4: Do lenders require an exit strategy for low-income borrowers?

A: Often yes. Common exits include property sales, business disposals, investment maturity, or inheritance distributions.

Q5: Is interest-only available for asset-rich clients?


A: Yes. Interest-only and hybrid repayment structures are widely available, especially through private banks that focus on net-worth-based affordability.

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