High Net Worth Borrower Secures £3m Interest-Only Facility Using Investment-Backed Repayment Plan
A high-net-worth client with substantial liquid assets but modest declared income secured a £3m interest-only mortgage on a £5m London townhouse using a private bank solution and an investment-backed repayment strategy.
Client Snapshot
Client Profile: High net worth individual
Location: London
Property Type: Prime London townhouse
Purchase Price: £5,000,000
Mortgage Amount: £3,000,000
Loan-to-Value: 60%
Income Profile: Modest declared income
Wealth Profile: Significant liquid and managed investments
Key Objective: Interest-only borrowing supported by an investment-based repayment plan
Context
The client’s wealth sat primarily in diversified, liquid investments rather than PAYE income. While asset levels were strong, a conventional affordability assessment would not have reflected true borrowing capacity.
The client wanted sensible leverage against a long-term London property, with flexibility around cash flow and a clear, credible capital repayment strategy aligned to their broader wealth planning.
The Challenge
Standard residential scorecards would have materially under-lent based on income alone, despite the client’s strong balance sheet.
In addition, interest-only borrowing at this level requires lenders to be comfortable with non-property repayment vehicles, detailed asset schedules, and enhanced governance around source of wealth and ongoing liquidity.
Without a relationship-led lender and disciplined packaging, the case would not have progressed.
Lender Strategy
Private banks were assessed based on their approach to asset-led affordability, interest-only lending, and acceptance of regulated investment portfolios as a repayment strategy.
The application was structured around a consolidated wealth position, with assets placed under management to support relationship pricing and underwriting flexibility. A clear investment-backed repayment plan was documented, aligned to the mortgage term and supported by custody confirmations and portfolio reporting.
Governance and AML requirements were addressed upfront to streamline internal credit and committee approval.
What We Can Do for You
Structure lending around total wealth, not just income
Access private banks comfortable with interest-only at scale
Coordinate lender, investment manager, and adviser requirements
Pre-empt governance and committee queries on large loans
The Result
A £3m interest-only facility was agreed at 60% LTV on the £5m purchase, with bespoke private-bank terms and an investment-backed repayment strategy in place. Assets were placed under management, creating a single relationship for ongoing review and support.
Why This Matters for Similar Clients
For asset-rich, income-light borrowers, borrowing capacity is driven less by salary and more by structure. When wealth, liquidity, and repayment strategy are presented clearly, private banks can offer solutions that mainstream lenders cannot.
Request your fee free mortgage consultation today. No obligation, just sound advice.
FAQs
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Often yes—many private banks ask for assets under management; amounts and terms vary by institution.
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Typically, a seasoned investment portfolio (or specific investment products) with current value sufficient to clear the balance; documentation and FCA-authorised administration are required. Policies differ by lender.
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Some retail lenders limit acceptable vehicles or require property sale; private banks take a holistic view and tailor structures for complex wealth.
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We maintain access to a panel of UK and international private banks for bespoke residential lending.
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3 Mar - Written By David Walsh
YOUR HOME MAY BE REPOSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE
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APPROVED BY THE OPENWORK PARTNERSHIP ON 24/09/2025