PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Asset based mortgage

MoneySaver9999_2
MoneySaver9999_2 Posts: 27 Forumite
in House buying, renting & selling
Hello,

I have a lot of assets (mostly liquid) but no conventional income. I'm not able to get a mortgage, even though I could purchase the property outright. But I don't want to do that.

Do asset based mortgages exist in the UK? Or are there any other possibilities at all?

Thanks

Comments

  • Tancred
    Tancred Posts: 1,424 Forumite
    MoneySaver9999 wrote: »
    Hello,

    I have a lot of assets (mostly liquid) but no conventional income. I'm not able to get a mortgage, even though I could purchase the property outright. But I don't want to do that.

    Do asset based mortgages exist in the UK? Or are there any other possibilities at all?

    Thanks

    If you have lots of assets then why not use them to buy the house outright, without a mortgage? Why don't you want to do that? As for getting a mortgage that depends on the income derived from such assets and how secure it is.
  • MoneySaver9999_2
    MoneySaver9999_2 Posts: 27 Forumite
    Tancred wrote: »
    If you have lots of assets then why not use them to buy the house outright, without a mortgage? Why don't you want to do that? As for getting a mortgage that depends on the income derived from such assets and how secure it is.

    I don't want to tie up so much money into a house. Sorry, I don't mean lots and lots of assets, but enough to buy the house outright.
  • Tancred
    Tancred Posts: 1,424 Forumite
    MoneySaver9999 wrote: »
    I don't want to tie up so much money into a house. Sorry, I don't mean lots and lots of assets, but enough to buy the house outright.

    It all depends on the return from the assets. Eg. if you have £1M invested and obtain a regular return of £50k every year from that investment then your mortgage could be based on that income.
  • MoneySaver9999_2
    MoneySaver9999_2 Posts: 27 Forumite
    Tancred wrote: »
    It all depends on the return from the assets. Eg. if you have £1M invested and obtain a regular return of £50k every year from that investment then your mortgage could be based on that income.

    So it would still have to be based off the income derived from the asset? It can't just be with the asset used as collateral?
  • The_Negotiator
    The_Negotiator Posts: 108 Forumite
    Surely the mortgage company will want evidence of income for repayment purposes?
  • Tancred
    Tancred Posts: 1,424 Forumite
    MoneySaver9999 wrote: »
    So it would still have to be based off the income derived from the asset? It can't just be with the asset used as collateral?

    The point is that the lender wants to know primarily about your income, not your assets. What guarantee do they have that you would not splash out on a Porsche and a Ferrari and take holidays in six star deluxe hotels three times a year?
  • Innys1
    Innys1 Posts: 3,434 Forumite
    The_Negotiator wrote: »
    Surely the mortgage company will want evidence of income for repayment purposes?

    Exactly this point. Assets are all well and good but if you aren't going to liquidate them to make the repayments, where is the money going to come from for the monthly DD? That's what the lender wants to know.
  • Tancred
    Tancred Posts: 1,424 Forumite
    The wisest thing would simply be to buy the house outright, to avoid any complications.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.4K Banking & Borrowing
  • 253.3K Reduce Debt & Boost Income
  • 453.8K Spending & Discounts
  • 244.4K Work, Benefits & Business
  • 599.6K Mortgages, Homes & Bills
  • 177.1K Life & Family
  • 257.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture