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4.97 out of 5 based on 2,400+ reviews
Rated 4.97 out of 5 from 2,400+ reviews
Being asset rich and cash poor can be a familiar position for high net worth clients who have spent years building wealth into property, pensions and investments. However, it can become a problem the moment an institution requires evidence of funds that are immediately accessible.
This is a situation a couple in their sixties found themselves in. Here’s how they took out a mortgage to raise cash they needed against a house they owned outright, without needing to sell investments at the time.
| Client profile | High net worth, asset rich, low earned income |
|---|---|
| Property value | £2.4 million, owned outright |
| Investments retained | £1.9 million in ISAs and pensions |
| Loan amount | £300,000 |
| Loan to value (LTV) | 12.5% |
| Product | Two-year discount variable, interest only, 12-year term |
| Lender type | Building society |
Your home may be repossessed if you do not keep up repayments on your mortgage.
A couple, both in their sixties, were living in a Grade II listed period house with an annexe, valued at £2.4 million, which had no mortgage at the time. Between them they held £1.9 million across Individual Savings Accounts (ISAs) and pensions.
One is self-employed, with a small salaried role alongside a business they had run for many years. The other is retired and derives their income from restricted stock unit (RSU) distributions.
Their child had a place at a university overseas. The parents had decided to fund the course directly rather than have their child take on significant student debt. However, the student visa process required proof that the first year’s fees could be met and it would accept only immediately available cash, in a bank statement less than four months old.
The main challenges included:
These characteristics reduced the number of lenders whose published or underwriting criteria appeared capable of accommodating the case.
Some specialist lenders may consider lending to high net worth clients whose wealth doesn’t arrive as income, and can assess the two together.
The specialist lender was able to consider the pension assets and investment holdings within affordability assessments, including assets that were not currently being drawn as income. The lender applied its own methodology to assess the potential income that could be generated from these assets over the mortgage term. This enabled the £300,000 borrowing requirement to be considered within the lender’s affordability criteria.
Key criteria that were relevant to the lender’s assessment included:
The clients expect to downsize within two to three years and repay from the sale proceeds. We recommended a 12-year term to provide greater flexibility if the planned move takes longer than anticipated, reducing the need to refinance in their mid-sixties.
£300,000 was raised against the house over a 12-year term, at 12.5% loan to value. The mortgage is on an interest-only basis, which means the £300,000 capital will remain outstanding throughout the mortgage term and must be repaid at the end of the term. In this case, the proposed repayment strategy is to sell the property and use the sale proceeds to repay the mortgage, with the clients intending to downsize to a smaller property.
The clients considered that retaining their investments was preferable to selling them at that time. This was their preference based on their individual circumstances and longer-term financial plans.
If you hold significant assets but limited earned income and need to raise capital, we can talk through what mortgage solution may be available. Call us or use the enquiry form below.
It may be possible, depending on your circumstances and individual lender criteria. Some lenders may consider certain pension, investment or other assets as part of their affordability assessment, while others may only consider income that is currently being received.
The treatment of assets varies between lenders and there is no guarantee that a particular lender will accept them or that a mortgage will be available.
Some lenders may consider pension assets or pension income when assessing mortgage affordability. The approach varies considerably between lenders. Some may consider income already being drawn, while others may take certain undrawn pension assets into account subject to their own criteria.
Whether pension assets can be considered will depend on the type of pension, the amount held, the proposed mortgage and the lender’s affordability and underwriting criteria.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The information presented in our case studies is intended for illustrative and marketing purposes only. Some case studies may be based on multiple enquiries or hypothetical scenarios to demonstrate typical processes or outcomes. Not all case studies represent completed business transactions, and the inclusion of a case study does not imply that the business was successfully concluded.
Any information relating to pensions is provided for general information purposes only and does not constitute financial or pension advice. If you require advice regarding your pension arrangements, you should seek guidance from a suitably qualified financial adviser. The information on this page relates solely to how lenders may assess pension income for mortgage affordability purposes.
Please be aware that Private Finance is not a tax advisor, and this page does not constitute tax advice.
The Financial Conduct Authority (FCA) does not regulate taxation advice.
Private Finance Ltd is authorised and regulated by the Financial Conduct Authority. 1-3 Worship Street, London, EC2A 2AB.
This article is based on information available on the date of issue, 23rd September 2026.
Whatever your situation, our mortgage team can advise on suitable solutions. We specialise in complex and bespoke mortgage solutions to help you find competitive terms.
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