For wealthy buyers, traditional income-based mortgage models often fail to reflect real financial strength. Many high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals hold significant wealth in investment portfolios, business equity, global real estate, or trusts rather than in predictable monthly salary. As a result, standard affordability checks used by high street lenders rarely produce accurate borrowing capacity. In 2025, this disparity has widened further, giving rise to asset-based lending as the primary route for significant property finance.
Asset-driven mortgage approvals have become essential across Prime Central London, luxury UK homes, and international relocation purchases. From entrepreneurs reinvesting profits into their companies, to private equity partners with carried interest cycles, to internationally mobile buyers with diversified global wealth—affluent clients increasingly rely on what they own rather than what they earn.
Private banks have evolved to meet this need. Their underwriting focuses on liquidity, portfolio strength, global wealth structures and long-term financial stability rather than narrow measures of taxable income. In this environment, structuring a strong case requires detailed financial presentation, strategic positioning, and an adviser who understands how to communicate complex wealth profiles to specialist lenders.
Willow Private Finance works daily with clients who borrow based on assets, investment holdings, trust structures and business equity rather than PAYE earnings.
The financial landscape of the past decade has reshaped how wealthy buyers access property finance. Traditional affordability models—typically focused on salary, bonuses and tax returns—are increasingly incompatible with the financial lives of affluent individuals.
Entrepreneurs frequently reinvest earnings back into their businesses. Private equity partners often receive significant wealth through carried interest or investment returns rather than monthly income. International professionals might hold assets in overseas entities or trust structures. Retirees, meanwhile, may have extensive portfolios but modest declared income.
These realities make “income multiples” an ineffective measure of borrowing power at the upper end of the market. Private banks have responded by creating lending models centred on asset strength, liquidity, risk diversification and long-term resilience.
In 2025, asset-based borrowing is now one of the most common pathways for mortgages above £3m–£5m. It is particularly relevant in markets such as Knightsbridge, Belgravia, Mayfair, St John’s Wood and Chelsea, where properties often range from £5m to well beyond £20m. For buyers in these segments, income alone has never been the key indicator of financial capability.
Asset-based lending allows borrowers to secure mortgages using demonstrable wealth rather than traditional income streams. Instead of asking, “What salary can support this loan?”, private banks ask, “Does this borrower have sufficient assets and liquidity to manage this mortgage safely across economic cycles?”
This underwriting approach recognises that wealthy buyers typically have:
Private banks analyse these elements holistically, often using them to justify interest-only structures, higher loan-to-values or flexible repayment plans. For many borrowers, this type of underwriting is far more reflective of their reality than mainstream salary modelling.
Asset-based underwriting typically involves three broad considerations:
1. Liquidity Position
Private banks prioritise easily accessible assets: cash, cash equivalents, listed securities, trust distributions or corporate reserves. They assess whether the borrower can comfortably cover mortgage payments—even in low-income years.
2. Net Worth & Wealth Composition
Banks evaluate total net worth, not just declared income. A borrower with diversified investments and multiple asset classes is considered more resilient than someone reliant on a single liquidity source.
3. Future Wealth Flow
For many HNW clients, income arrives through non-linear events: bonuses, portfolio maturities, dividends, business sales, or carried interest distributions. Private banks model future wealth rather than relying on traditional monthly earnings.
This is one of the reasons asset-based borrowing is widely used by investment professionals, global executives and entrepreneurs.
Mainstream lenders rely on formula-driven affordability assessments, regulatory stress tests, and fixed rules. They require documented income streams that fit specific thresholds and often struggle with:
As a result, even extremely wealthy borrowers may be declined for mortgages they can easily afford. High street lenders increasingly limit their exposure above £1.5m–£2m, pushing affluent buyers toward the private bank and specialist lending market.
Private banks use a detailed, relationship-centric approach. Instead of asking for payslips, they require a clear and verifiable picture of wealth. They evaluate:
Liquidity Depth
The single most important factor. Private banks want reassurance that mortgage commitments can be serviced from liquid assets, even during years where income is low, delayed or reinvested.
Portfolio Stability
Banks assess investment portfolios for diversification, volatility and long-term resilience. A balanced, multi-asset portfolio carries more underwriting strength than a concentrated or speculative one.
Global Wealth Position
They examine property holdings, trust structures, business equity, corporate liquidity and international investments. The goal is to determine financial sustainability.
Source of Wealth Transparency
AML standards in 2025 require detailed documentation showing how the borrower accumulated wealth. This applies to entrepreneurs, investors and internationally mobile clients alike.
Financial Conduct & Organisation
Private banks evaluate how professionally managed the borrower’s finances are. Clean documentation, consistent investment strategies and strong advisory teams significantly strengthen lending outcomes.
Wealthy buyers typically leverage assets in several ways:
Using Investment Portfolios as Evidence of Affordability
Clients with sizeable investment portfolios—whether managed through banks, wealth managers or family offices—use them to demonstrate long-term financial strength. Lenders may apply a percentage of portfolio value as equivalent “income” when assessing affordability.
Using Corporate Earnings Rather Than Personal Drawings
Entrepreneurs often leave profits within their businesses. Private banks analyse company performance and retained earnings rather than personal salary alone.
Using Trust Arrangements
Beneficiaries of trusts may receive distributions irregularly. Private banks can model predictable trust income or wealth access as part of their underwriting.
Using Overseas Wealth
International buyers often rely on offshore accounts, global assets or foreign investment returns. Private banks familiar with cross-border wealth assess these in-depth and incorporate them into lending decisions.
Using Anticipated Liquidity Events
Many borrowers secure interest-only mortgages supported by future liquidity, such as:
This strategy is common among private equity executives and business owners.
Although asset-based borrowing is flexible, it requires a high standard of documentation. Some clients face obstacles, such as:
Complex Wealth Structures
High-value clients often have multi-layered corporate or trust arrangements. Unless clearly documented, lenders may need additional clarity before approving lending.
Cross-Border Documentation Requirements
Internationally mobile buyers must evidence source of wealth, tax residency and overseas assets. Compliance is detailed and time intensive.
Valuation Issues
Luxury properties, particularly above £5m–£10m, sometimes receive conservative valuations. This can affect loan size, especially where assets—not income—are driving affordability.
AUM Requirements
Some private banks require borrowers to place assets under management in exchange for better mortgage terms. Understanding how much AUM is reasonable—and when to negotiate—is crucial.
The strongest applications share certain characteristics:
Clear Wealth Summary
A comprehensive overview of assets, liabilities, corporate interests, liquidity and investments helps private banks understand financial stability quickly.
Well-Prepared Income Narrative
Even if income is irregular or variable, lenders appreciate clarity on how the borrower generates wealth—and how future income cycles align with loan servicing.
Liquidity Evidence
Up-to-date statements and structured records of accessible assets are essential.
Strategic Property Valuation Preparation
For high-value properties, especially above £10m, early valuer engagement helps avoid surprises.
Experienced Representation
Banks often prefer working with advisers who can present information cleanly and negotiate terms aligned with the borrower’s wider wealth strategy.
A private equity partner with irregular carried interest distributions secured a £9m mortgage after demonstrating a strong investment portfolio and future distribution schedule, despite modest annual salary.
An entrepreneur reinvesting profits into a growing tech business secured a £5.5m interest-only mortgage once the lender reviewed corporate accounts, retained earnings and liquidity held across multiple entities.
An international UHNW family purchased a £12m London home after presenting a clear structure of global wealth, trust distributions and diversified portfolios, leading to a favourable LTV without relying on local income.
These generalised examples highlight how asset-focused underwriting can unlock opportunities unavailable through mainstream lenders.
Asset-based lending will continue to grow as global wealth becomes more diversified and income becomes less linear. Private banks will refine underwriting criteria, particularly around AML, cross-border wealth and long-term liquidity. Yet demand for London’s luxury homes remains strong, with asset-backed mortgages expected to dominate the high-value lending market.
Borrowers who understand how to present wealth clearly—and who engage advisers experienced in structuring large, complex cases—will continue to secure favourable terms.
Willow Private Finance specialises in asset-based mortgage structuring for HNW and UHNW clients purchasing or refinancing luxury property. We work closely with private banks, offshore lenders and specialist providers who understand non-linear income, investment-driven wealth, and global financial structures.
Our role includes preparing lender-ready wealth summaries, positioning complex income or asset profiles, coordinating valuation strategy and negotiating bespoke mortgage terms that align with your wider wealth agenda. Whether your wealth sits in portfolios, business equity, trusts or global assets, we ensure lenders understand the full picture.
Frequently Asked Questions
Q1: Can I get a mortgage without traditional income if I have large assets?
Yes. Private banks regularly approve £3m–£20m+ loans based on asset strength rather than income alone.
Q2: Do private banks accept investment portfolios as evidence of affordability?
They do. Portfolios are often central to asset-based lending decisions.
Q3: Can entrepreneurs borrow based on business equity?
Yes. Private banks analyse retained profits and company performance rather than personal salary.
Q4: Do lenders accept overseas wealth for UK mortgages?
Yes—provided documentation, source of wealth and tax residency are clearly evidenced.
Q5: Are interest-only mortgages available for asset-based borrowers?
Yes. They are common and often tied to future liquidity events or portfolio performance.
Q6: How much liquidity do I need for asset-based lending?
Requirements vary, but private banks typically expect seven-figure liquidity for £5m+ loans.
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About the Author
Wesley Ranger, Director of Willow Private Finance, has more than 20 years of experience structuring complex, high-value mortgage arrangements for affluent clients across the UK and internationally. With deep expertise in private bank lending, asset-based underwriting, cross-border finance and sophisticated wealth analysis, Wesley has supported hundreds of HNW and UHNW clients in securing funding for luxury property acquisitions and refinancing.
Important Notice
This article is for general information purposes only and does not constitute personal financial advice. Asset-based lending involves detailed financial analysis, liquidity assessment, source-of-wealth verification and bespoke underwriting criteria that vary significantly between lenders. Eligibility, lending terms and product availability depend on individual financial circumstances, assets, global income and regulatory requirements.
Always seek tailored advice before entering any financial arrangement.
Willow Private Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA No. 588422).
Registered in England and Wales.
