Investment Income Mortgage for High-Net-Worth Borrowers
Trust | Honesty | Integrity.
Values Define Us.
Speak to a Mortgage Adviser
Speak to a Mortgage Adviser
Investment Income Mortgage for High-Net-Worth Borrowers
Securing a mortgage can be a complex process, especially for individuals whose wealth is primarily held in investments rather than a traditional salary. An investment income mortgage offers a tailored solution for high-net-worth borrowers who want to leverage their investment portfolios to access property finance. For many, trying to get a mortgage with investment income presents unique challenges, as traditional lenders may not recognize non-salary income, but specialized lenders can help high-net-worth individuals get a mortgage by considering their full financial profile. Unlike high street lenders who typically assess affordability based mainly on earned income, this specialized lending approach considers your entire investment portfolio as part of your income sources, enabling you to access competitive and flexible mortgage products.
At Fitch & Fitch Private Office, we work closely with private banks and specialist lenders who understand the nuances of underwriting mortgages for clients with complex income profiles. By incorporating your investment income into the mortgage application process, these lenders provide bespoke solutions that address the unique financial circumstances of affluent individuals with significant assets but limited cash flow.
Unlock Property Finance Using Your Investment Wealth
For many high net worth individuals, the challenge lies in demonstrating sufficient income to satisfy the lender’s criteria when most of their wealth is tied up in investments rather than a steady salary. Private banks catering to these clients are experienced in accommodating high income multiples and complex income structures, ensuring that affluent clients with high income are not excluded. Mainstream lenders often overlook the value of investment portfolios, focusing instead on basic salary, tax returns, or rental income. This can exclude many asset-rich but cash-flow-light borrowers from accessing high value mortgages or large loans on favourable terms.
By contrast, investment income mortgages allow you to use your portfolio as a source of affordability. This means your investments are assessed alongside traditional income streams, such as self employment income, trust fund income, rental income, or even as your primary income. If your investment income is consistent and well-documented—using evidence like dividend certificates and tax returns—it can serve as a primary income source for mortgage qualification. This approach opens doors to competitive rates typically reserved for clients with more straightforward income profiles.
How Investment Income Mortgages Work
Understanding how lenders calculate affordability based on your investment portfolio is key to securing the right mortgage. Lenders may view investment income as higher risk compared to a traditional salary, which can affect how they assess affordability and structure the mortgage.
1. Income Valuation
2. Spread Over Term
Complex Income and Mortgage Applications
For high-net-worth individuals, applying for a mortgage can be particularly challenging when income is derived from a variety of sources beyond a traditional salary. Private banks and specialist lenders are well-versed in handling complex income scenarios, including investment income, rental income, and trust fund income. These lenders understand that high net worth individuals often have multiple income streams, which may fluctuate or be structured in non-standard ways.
To accurately assess your financial position, lenders will typically request comprehensive documentation. This includes recent bank statements, tax returns, and detailed portfolio statements that outline your investment income and other income sources. By providing a clear picture of your financial landscape, you enable lenders to evaluate your mortgage application more effectively, ensuring that your complex income profile is properly considered.
Navigating Multiple Income Streams
High net worth individuals often have diverse income streams, such as self employment income, bursary income, and investment income, which can complicate the mortgage application process. Lenders prefer to see a stable and predictable income stream, but this is not always possible with complex income sources. This is where the expertise of a qualified mortgage advisor becomes invaluable.
A qualified mortgage advisor can help you present your complex income in the most favourable light, ensuring that all income sources are documented and explained. They can also identify which lenders are most receptive to applicants with multiple income streams, increasing your chances of securing the right mortgage. By working with an advisor who understands the nuances of high net worth mortgage applications, you can navigate lender preferences and requirements with confidence.
Documentation and Lender Requirements
When applying for a mortgage with complex income, thorough documentation is essential. Lenders will typically require recent bank statements, tax returns, and portfolio statements to verify your income sources and assess your overall financial health. In addition, you may need to provide supporting documents such as dividend certificates, tenancy agreements for rental income, and evidence of a consistent track record of income and cash flow.
This level of detail allows lenders to gain a comprehensive understanding of your financial situation and to assess your ability to meet mortgage repayments. Demonstrating a reliable history of income and prudent cash flow management can significantly strengthen your mortgage application, especially when dealing with complex income streams.
Complex Income Solutions
Private banks and specialist lenders offer a range of complex income solutions designed specifically for high net worth individuals. These lenders often provide flexible underwriting, allowing for higher income multiples and access to exclusive mortgage rates that are not typically available through mainstream lenders. However, it is worth noting that these bespoke solutions often require significant assets under management and may come with higher costs.
By leveraging your significant assets and working with lenders who understand complex income, you can access mortgage products that are tailored to your unique financial circumstances. Specialist lenders and private banks are equipped to structure high value mortgages that accommodate your investment income and other non-traditional income sources, ensuring you receive the most competitive and appropriate terms.
Tailored Lending Strategies for High-Net-Worth Borrowers
Securing the best mortgage deal as a high net worth individual with complex income requires a tailored approach. An experienced mortgage broker can guide you through the process, helping you identify the most suitable private banks, private bank mortgages, and specialist lenders for your needs. By considering your assets under management, income streams, and individual circumstances, a broker can match you with lenders offering competitive rates, flexible repayment terms, and dedicated relationship managers.
Private banks are particularly adept at crafting bespoke mortgage solutions, including higher loan-to-value ratios, interest-only repayment options, and flexible underwriting criteria. While these services may require significant assets under management and may involve higher fees, they offer a level of personalisation and flexibility that mainstream lenders often cannot match. For high net worth individuals seeking large mortgages or high value loans, working with a private bank or specialist lender ensures access to the best deals and tailored support throughout the mortgage process.
In summary, navigating complex income and mortgage applications is best achieved with expert guidance. By partnering with a qualified mortgage advisor or experienced mortgage broker, high net worth individuals can secure the right mortgage, benefit from tailored lending strategies, and enjoy the advantages of working with lenders who truly understand their unique financial needs.
Why Consider This Option?
Investment income mortgages offer several advantages, especially for those with complex or multiple income streams:
Access to Larger Mortgages: You can borrow up to 70–90% loan-to-value (LTV) based on your investment assets, preserving your capital rather than relying on your earnings alone.
Benefit from ‘Dry Lending’: Many lenders now offer dry lending, meaning you do not have to transfer your assets under management (AUM) to the lending provider. Some lenders may also accept other collateral, such as property or business assets, to further support the mortgage application. This allows you to maintain control over your investment portfolio while still leveraging its value.
Ideal for Asset-Rich, Cash-Light Borrowers: This option suits investors, business owners with retained earnings, and individuals with high investments but low reported salaries.
Private Banks & Specialist Lenders: Your Mortgage Partners
At Fitch & Fitch, we collaborate with a wide range of lenders who specialise in securing mortgages for clients with non-standard income profiles, including private banks, specialist lenders, and commercial banks that provide specialised mortgage products:
Private Banks: These institutions are comfortable underwriting mortgages based on complex asset types and high-value portfolios. They often provide dedicated relationship managers who offer personalised service and tailored solutions.
Specialist Lenders: Offering flexible LTVs and affordability models, these lenders cater to borrowers with complex income sources, including foreign currency holdings and offshore assets.
Commercial Banks: Increasingly, commercial banks offer mortgages for high-net-worth individuals, adopting flexible lending practices and sometimes considering assets under management (AUM) requirements.
International and Boutique Institutions: Skilled at managing high value mortgages for non UK residents or clients with diverse income streams.
These mortgage lenders can structure a variety of mortgage products, including:
– Interest-only mortgages
– Borrow-to-let finance
– High LTV mortgages
– Offset and variable-rate products
All of these options can be designed around your investment portfolio as the primary affordability metric, ensuring a bespoke fit for your financial situation. Choosing the right mortgage lender is crucial for clients with non-standard income profiles to access the most suitable and flexible solutions.
Investment Income Mortgages in the Current Market
Historically, investment-backed mortgages were the preserve of private bank mortgages requiring borrowers to place assets under management—a practice known as AUM lending. However, the market has evolved significantly:
Dry lending is now widely available, allowing you to keep your assets where they are without compromising your borrowing capacity. Most private banks require minimum asset thresholds and prefer to establish long term relationships with clients, often managing assets over an extended period.
Lenders increasingly value liquid investments such as equities, bonds, and funds, which are easier to assess and value. High value mortgage products typically require substantial assets under management, higher borrowing limits, and may involve arrangement fees.
Competition among mortgage providers has improved, resulting in more competitive rates and better terms for borrowers with significant assets but unconventional income. When comparing mortgage offers, interest rate and overall interest rates are key factors for high-net-worth borrowers, as they directly impact affordability and the total cost of borrowing.
This shift means that high-net-worth individuals can access high value loans without the higher costs or restrictive terms often associated with traditional lending routes.
FAQs: Investment Income & Mortgage Lending
Investment income mortgages usually offer LTVs between 70% and 85%, depending on the size and liquidity of your portfolio, your overall wealth, and your income profile.
How Fitch & Fitch Private Office Can Help
Navigating the world of investment income mortgages requires expert guidance. At Fitch & Fitch Private Office, we provide:
Strategic Investment Structuring: We collaborate with your investment advisers to present your portfolio in the best light for mortgage underwriting.
Access to 100+ Lenders: From private banks to specialist lenders, we identify the most suitable mortgage providers offering the best deal tailored to your needs. Choosing the right lender is crucial, especially if you have complex income sources, as the right lender understands and can accommodate these situations.
Bespoke Mortgage Design: Whether you prefer interest-only, offset, or fixed-rate solutions, we customise your mortgage product and manage the entire process from application to completion.
Qualified Mortgage Advisors and Mortgage Brokers: Our team ensures you receive the right advice and support to secure the mortgage that fits your unique financial situation.
Real-World Example: High-Net-Worth Portfolio Mortgage
Consider a UK-based investor with £5 million in liquid assets but no regular earned income. Traditional lenders would struggle to assess affordability based on basic salary or tax returns alone. Similar challenges are often faced by self employed individuals, whose variable income and reliance on documentation such as tax returns and accounts can make mortgage applications more complex.
Our solution was to structure a 10-year investment income mortgage that assumed a notional income of £250,000 per year from the portfolio. We secured a 75% LTV interest-only loan from a private bank mortgage provider without requiring the client to transfer assets under management. This approach allowed the investment portfolio to remain intact and growing while financing the purchase of a new family home in London.
What our clients are saying…
Next Steps
If you hold significant investment assets but lack a regular salary or traditional income streams, an investment income mortgage could be the right solution for you. Contact our Private Office team today at privateoffice@fitchandfitch.co.uk or call 020 7859 4339
