Is it possible to use a company pension pot, SIPP or investment portfolio to secure a mortgage?

by Aaron Strutt

Oct 01 2021

Trinity Financial has access to one particularly generous lender offering cheap fixed rates to wealthier borrowers looking to use their investment income to secure a mortgage.  

Our specialist contact at Metro for Intermediaries authorises mortgages using 5% of the fund value stated on the latest fund report with a 4.5 times multiplier for affordability purposes. Interest-only mortgages are available, and the maximum age at the end of the term is 80.   

Some banks and building societies will use either all or 50% of investment income, providing borrowers have a one or two-year track record of earnings and SA302's to evidence the income. They may also check the nature of the investment and determine whether the payment is sustainable. 

Our contact at Metro Bank for Intermediaries accepts: 

Pension Pot - Private Pension SIPP Income – The bank will take at 5% of the fund value, over a maximum term of 20 years, even for borrowers currently not drawing the fund, but they must be aged over 55. A Current Annual Investment Portfolio Report will be required, and if the fund contains a property, the property's value will be excluded.  

SSAS Income – The lender will accept 5% of the fund value over a maximum term of 20 years. This can be considered even if money is not currently drawn if the customer is over age 55. Typically Accounts and Investment Portfolio Reports are required. 

Investment Income - The lender will accept 5% of the fund value over a maximum of 20 years - subject to a minimum managed portfolio value of £250,000. Single stock or funds with individual properties will be excluded.  

Aaron Strutt, product director at Trinity Financial, says: "There is a selection of lenders that will accept income generated from investments, but they usually want more than a funds statement and one year's investing. 

"The bank recently arranged a £1.4 million mortgage for a client with a £7 million fund generating £350,000 income. It also lends to investment bankers in their 40's with managed portfolios."

Call Trinity Financial on 020 7016 0790 to secure an investment income mortgage or book a consultation