Credit lines—sometimes called liquidity lines, portfolio loans, or revolving credit facilities—have become one of the most powerful and flexible tools for purchasing UK property in 2025. While traditional mortgages still dominate the residential and investment markets, high-net-worth buyers increasingly rely on credit facilities secured by their wealth rather than income.

This shift is driven by several market realities. Affordability calculations remain restrictive for many borrowers, especially those with non-traditional income profiles. At the same time, affluent buyers—including international clients—often hold significant wealth in investment portfolios, cash deposits, or business assets. Credit lines allow these individuals to unlock liquidity without needing to sell investments or restructure global financial arrangements.

Willow Private Finance regularly works with clients who want to avoid liquidating portfolios, triggering tax events, or disrupting long-term investment strategies. Credit lines serve as a highly effective tool, especially when combined with private bank mortgages, bridging finance, or complex international income structures. This approach is already common in cases where clients rely more on assets than income, as explored in our guide on how wealthy buyers borrow using assets instead of income.

Credit lines are not only used for deposits; in many private bank structures, they can fund an entire purchase. This article explains how such facilities work in 2025, what banks are offering, who qualifies, and how they integrate with property finance strategies for sophisticated UK and international clients.

Market Context in 2025

The landscape for property finance has evolved significantly in 2025. Interest rates have stabilised after several volatile years, yet traditional affordability criteria remain stringent. This has pushed many high-net-worth clients toward alternative financing models—especially those whose income does not neatly align with lender affordability formulas.

At the same time, capital markets have delivered mixed performance across sectors. Many wealthy individuals prefer not to sell investment positions, either because they expect further gains or because a sale would trigger capital gains tax. The demand for liquidity without liquidation has never been higher.

Lenders have responded by expanding the availability of credit lines secured against investment portfolios, cash deposits, or other wealth assets. These facilities are attractive for banks because the assets used as security are often more liquid, stable, and easy to value than property income or trading profits. For borrowers, credit lines offer speed, leverage, and flexibility.

International buyers remain a major force in the UK market, particularly in London and the South East. Many of these clients hold wealth overseas, in multi-jurisdictional structures, or through family offices. Credit lines allow them to navigate UK finance rules without restructuring their income globally—a topic covered comprehensively in our guide on mortgages for international buyers in 2025.

Overall, 2025 is a favourable year for portfolio-backed and asset-backed borrowing, with more banks than ever offering bespoke credit line solutions.

How Credit Lines for Property Purchases Work

A credit line is a pre-agreed facility that a borrower can draw funds from as needed. Unlike a traditional mortgage, a credit line is not tied to a specific property. Instead, it is secured against assets the borrower already owns—most commonly an investment portfolio, but also cash deposits, structured products, or business holdings.

The process is generally straightforward. The lender assesses the value, composition, and liquidity of the assets offered as security. Based on these factors, the bank sets a lending limit and interest terms. Borrowers can then draw down funds for a deposit, a full purchase, or other liquidity needs related to the acquisition.

There are typically two forms of credit lines:

1. Revolving credit lines:
These operate similarly to an overdraft or revolving facility. Borrowers can draw down and repay repeatedly, with interest charged only on the amount used.

2. Fixed-term portfolio loans:
Here, the borrower draws the full amount at once and repays over a set term. This is more common when using the credit line to complete a purchase directly.

A major advantage is speed. Credit lines can be arranged far faster than property-specific mortgage underwriting. For buyers competing in fast-moving markets or securing off-market property, this gives a significant advantage.

Borrowers also retain their investment exposure. Instead of selling assets to raise capital, they preserve long-term investment strategies and avoid crystallising gains or losses.

What Banks Offer Credit Lines in 2025

Credit lines are offered primarily by private banks, although certain specialist lenders and international banks active in the UK also provide them.

The most competitive offerings typically come from:

• UK-based private banks with wealth-management divisions
• Swiss, Luxembourgish, and Liechtenstein private banks
• Private-client divisions of major global banks
• Specialist asset-backed lenders
• Family office-friendly institutions

While mainstream lenders rarely offer credit lines for property purchases, they may accept them as part of a broader affordability or security package.

In 2025, the appetite for credit-line lending is strong. Many banks treat such facilities as low-risk, especially when secured against diversified investment portfolios or cash deposits. Structures can include multi-currency borrowing, varying interest-only periods, or integrated wealth-management solutions.

Some institutions require the portfolio to be transferred to their management before lending. Others allow collateral to remain with an external wealth manager. Clients must balance convenience, performance, and relationship benefits to decide which bank offers the best structure.

What Lenders Evaluate When Offering a Credit Line

Banks take a detailed look at the assets being pledged. Key factors include liquidity, diversification, volatility, and historical performance. The more stable and diversified the portfolio, the higher the potential lending limit.

Portfolios consisting of liquid, low-risk assets—such as government bonds and diversified ETFs—often attract the highest LTV ratios. Concentrated single-stock exposures, private equity holdings, or high-volatility assets attract more conservative lending.

Another key factor is the borrower’s risk profile. Even when income is secondary, banks will assess tax residency, regulatory status, wealth source, and overall financial profile. High-net-worth exemptions under FCA rules allow greater flexibility for certain borrowers, particularly entrepreneurs and international clients with significant liquidity.

Lenders also evaluate whether the borrower will use the credit line as the primary funding source or combine it with mortgage borrowing. The structure can influence terms significantly.

Challenges Buyers Face When Using Credit Lines

Despite their advantages, credit lines come with unique complexities that borrowers need to understand.

The first is market volatility. If the underlying portfolio falls in value, the bank may require the borrower to repay part of the facility or top up collateral. For borrowers unwilling to take this risk, a hybrid structure—credit line plus mortgage—may offer better stability.

Another challenge is the potential requirement to transfer investments to the lending bank. While this can unlock more favourable rates or higher lending limits, some clients prefer to keep their portfolios under existing management for strategic or personal reasons.

International clients may also face additional documentation requirements, especially when pledging assets held in foreign jurisdictions. Tax reporting, proof of wealth, and KYC requirements can be more extensive.

The structure of the facility itself can also be complex. Some credit lines are interest-only, while others require amortisation. Interest rates may vary depending on currency, asset type, and bank appetite.

Finally, clients sometimes underestimate how differently banks treat asset profiles. A portfolio worth £10 million at one bank may support £6 million of borrowing, while another bank may offer only £3 million based on its internal risk model.

Smart Strategies for Buyers Using Credit Lines in 2025

In 2025, many borrowers use credit lines as part of a wider strategy. One common approach is using a credit line to fund the deposit while simultaneously securing a private-bank mortgage for the remainder of the purchase. This preserves liquidity and avoids over-leveraging the portfolio.

For other clients, a full purchase funded by a credit line is appealing—especially when expecting future liquidity events such as business income, investment returns, or asset divestments. This offers long-term flexibility and reduces the pressure of income-based affordability.

Borrowers with multi-country income or international wealth structures may also blend credit lines with other forms of underwriting, a concept explored further in our article on multi-country income mortgages.

Some clients restructure portfolios ahead of applying for a credit line. Reducing concentration risk, increasing stability, or improving liquidity can significantly increase available borrowing.

The best results typically come when borrowers start planning early—long before signing a purchase contract or offering on a property.

A Typical High-Net-Worth Hypothetical Scenario

A typical scenario involves a client with a £5–£15 million investment portfolio who does not want to sell existing positions. The client is purchasing a London property worth £3–£7 million and prefers to retain investment exposure.

A private bank may offer a credit line covering 50–65% of the portfolio’s value, giving the borrower significant liquidity. The client may use this for the deposit, the full purchase, or to support an interest-only mortgage.

Clients with multi-currency income or wealth held offshore often benefit most from this structure, particularly when avoiding asset liquidation in volatile markets.

This type of arrangement has become increasingly common in 2025 among both UK-based and international buyers.

Outlook for 2025 and Beyond

Credit lines are expected to remain a central component of high-value property finance in 2025 and into 2026. Private banks continue to view them as desirable, low-risk facilities that help attract long-term wealth-management clients.

We expect continued growth in:

• Multi-currency credit line structures
• Loan-to-value flexibility for lower-volatility portfolios
• Integrated mortgage-plus-credit-line packages
• Appetite from European and Middle Eastern private banks
• Credit lines structured for international family-office clients

As affordability rules remain strict, credit lines will continue to be an essential tool for wealthy buyers who prefer asset-backed lending over traditional income-based borrowing.

How Willow Private Finance Can Help

Willow Private Finance works extensively with clients who use credit lines to acquire UK property. We have strong relationships with private banks, specialist lenders, and institutions offering bespoke liquidity solutions based on investment portfolios, global assets, or multi-jurisdiction wealth.

Our expertise includes structuring hybrid borrowing models, negotiating stronger LTVs, and coordinating complex applications for clients with international tax, income, or investment profiles. Whether you want to use a credit line for a deposit, full purchase, or part of a wider strategy, we provide whole-of-market access and detailed guidance throughout.

Frequently Asked Questions

Q1: Can a credit line fully fund a UK property purchase in 2025?
Yes. Many private banks allow borrowers to use a credit line to fund the entire purchase, provided the pledged assets are sufficient and meet risk criteria.

Q2: What assets can I use to secure a credit line?
Most lenders accept diversified investment portfolios, cash deposits, bonds, and managed funds. Higher-risk assets such as crypto or concentrated single-stock positions are typically excluded or heavily discounted.

Q3: Do I still need income to qualify for a credit line?
Income plays a secondary role. High-net-worth clients often qualify based on assets alone, especially under FCA high-net-worth exemptions.

Q4: Are credit lines risky because of market volatility?
They can be. If the portfolio falls below a threshold, the bank may ask for additional collateral. Borrowers must understand margin-call rules before proceeding.

Q5: Can I combine a credit line with a traditional mortgage?
Yes. Many clients use a credit line for the deposit while securing a private-bank mortgage for the remainder. This is a common strategy in 2025.

Q6: Do international buyers use credit lines for UK property purchases?
Frequently. Credit lines allow them to avoid complex income documentation or cross-border restructuring, making them particularly attractive for overseas buyers.

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