In today’s property market, speed and certainty of funds are often the difference between securing a deal and losing it. For high-net-worth individuals, liquidity is not always straightforward. Much of their wealth may be held in global investment portfolios, trusts, or long-term strategies that are not easily liquidated without triggering tax liabilities or disrupting investment plans.

This is where Securities Backed Lending (SBL) has become a powerful tool in 2025. By pledging a portfolio of equities, bonds, or managed funds as collateral, borrowers can unlock substantial liquidity to finance property purchases — all without selling down their holdings. Increasingly, SBL is being used to acquire prime residential homes, fund deposits, or bridge transactions while longer-term mortgages are arranged. It sits alongside bespoke facilities such as large mortgage loans and private bank mortgages as a cornerstone of high-net-worth property finance.

Why Securities Backed Lending Works for Property Finance

Property finance is rarely just about finding the cheapest rate. For wealthy clients, the priority is often speed, flexibility, and discretion. SBL is attractive because it delivers these benefits in a way traditional mortgages cannot.

By using an investment portfolio as security, clients avoid the need for lengthy income verification, affordability testing, and credit scrutiny. Lenders are instead focused on the quality, size, and liquidity of the portfolio. For international buyers or clients with complex income profiles, this can mean accessing large sums of capital in days rather than weeks.

The other advantage is that assets remain invested. Selling down a £5 million portfolio to release £2 million for a property purchase may crystallise capital gains tax, disrupt diversification, and lose exposure to future growth. By borrowing against the portfolio instead, clients preserve their long-term wealth strategy while gaining the liquidity they need today.

How SBL Is Used in the Property Market

There are three primary ways securities backed lending is being applied to property finance in 2025:

Direct Purchases

A client can use SBL to buy a property outright. This is particularly valuable in competitive markets such as London, where cash buyers often secure priority. By leveraging their portfolio, a buyer effectively becomes a cash purchaser, able to complete quickly and negotiate strongly.

Deposits and Bridging

SBL is often used to fund deposits or to bridge a transaction until longer-term financing is arranged. For example, a client may draw £1 million against a portfolio to exchange contracts on a property, then refinance into a development loan or mortgage once planning or valuations are complete.

Portfolio Integration

For landlords and developers, SBL can be integrated into a wider strategy. A securities-backed facility might cover acquisition costs while other property assets are refinanced or sold, much like bridging finance but secured on securities rather than property.

A Case Study: Using SBL to Buy Prime London Property

Consider a Middle Eastern client with a £10 million portfolio managed by a global investment bank. They wish to purchase a £4 million apartment in Knightsbridge but do not want to liquidate their holdings.

By pledging the portfolio, the client secures a £3 million SBL facility at 60 percent loan-to-value within days. This gives them the ability to exchange and complete quickly, while arranging a prime property mortgage in parallel. The SBL is repaid once the mortgage is in place, with the client never needing to sell investments or trigger tax.

This example highlights the unique advantage of SBL: liquidity at speed, without compromising the integrity of a wealth plan.

Risks Borrowers Should Consider

While SBL offers clear advantages, borrowers must be aware of its risks.

The most immediate is market volatility. If portfolio values fall, the lender may issue a margin call, requiring additional collateral or partial repayment. In extreme cases, assets may be liquidated to protect the lender. Borrowers therefore need to ensure they have sufficient liquidity elsewhere or a plan to refinance if markets move against them.

Another risk is eligibility. Not all securities are acceptable as collateral. Highly concentrated positions, illiquid investments, or speculative holdings may be excluded, reducing borrowing potential.

Finally, clients must remember that these are usually short- to medium-term facilities, often one to three years in duration. Without a clear repayment strategy — whether through refinancing, asset sales, or transitioning into longer-term mortgages — borrowers may face liquidity pressure at maturity.

2025 Market Trends: Why SBL Is Growing in Property Finance

Several factors are driving the growth of SBL in property finance in 2025.

First, global wealth has become increasingly mobile. International investors continue to view the UK as a stable destination for property ownership, particularly in London and the South East. Yet many face challenges when it comes to traditional mortgages, from foreign income verification to cross-border tax structures. SBL bypasses these hurdles, making it the tool of choice for international buyers.

Second, tax planning is becoming more complex. With higher capital gains tax exposures in both the UK and overseas jurisdictions, selling investments to fund property purchases is increasingly unattractive. SBL allows clients to avoid triggering taxable events while still securing liquidity.

Finally, speed is essential in a competitive market. With rising demand for luxury property and shrinking availability in prime postcodes, buyers who can demonstrate immediate liquidity are best placed to secure opportunities.

How Willow Can Help

At Willow Private Finance, we regularly structure securities backed lending facilities for clients purchasing property in the UK. Our expertise lies in knowing which banks and lenders offer the most competitive terms, how portfolios are assessed, and how to structure facilities so they integrate seamlessly with long-term mortgage or investment strategies.

For international buyers, we help navigate cross-border complexities. For developers and landlords, we design layered solutions where SBL complements portfolio mortgages and refinancing. For ultra-high-net-worth clients, we ensure facilities are aligned with wealth planning goals, including trust and estate structures.

Whatever your objective, Willow can source and structure the right solution, allowing you to unlock liquidity from your portfolio while protecting your investments.

Frequently Asked Questions

Why would a high-net-worth client use property finance backed by securities rather than selling their investments?
Because it allows them to unlock liquidity while retaining exposure to their investment gains and deferring capital gains tax, rather than disposing of appreciated holdings.

How does securities-backed lending (SBL) integrate with property finance?
The borrower pledges a securities portfolio (stocks, bonds, ETFs) as collateral, draws a loan (often in GBP), and uses those funds for property acquisition or refinancing, while the securities remain in their portfolio.

What are the advantages of using SBL for property versus a conventional mortgage?

• Speed: fewer income or affordability constraints
• Flexibility: loan use is broader (not restricted to the property)
• Tax efficiency: avoid triggering capital gains on investments
• Leverage: preserve investment positions while borrowing

What types of securities are typically acceptable as collateral?
Liquid, publicly traded, diversified equities, investment-grade bonds or ETFs are preferred. Illiquid assets, private equity, or speculative instruments are often discounted or excluded.

What are the key risks and how should borrowers mitigate them?
Risks include margin calls when market values fall, portfolio volatility eroding collateral buffer, and currency mismatch in cross-border cases. Mitigations include conservative loan-to-value ratios (LTV), maintaining cash reserves, diversifying the collateral base, and exit planning (sale or refinance).

How do lenders assess and price a securities-backed property finance case?
They evaluate the quality and liquidity of the pledged portfolio, the borrower’s credit and track record, structural complexity (trusts/offshore), fallback exit options, and required legal and custody arrangements.



Can SBL be used across jurisdictions (e.g. non-UK portfolios for UK property)?
Yes — in 2025, many cross-border structures allow borrowers to pledge global portfolios, though additional legal, custody, and regulatory hurdles must be addressed (e.g. enforceability, currency risk).

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