Yes, investments can be used as an interest-only repayment strategy, but lenders will want strong evidence that the plan is realistic and that the assets are accessible when the mortgage term ends. In high net worth lending, this is a common approach, but it is assessed carefully because investment values can move up and down.
Lenders typically look at whether the investment assets are liquid (easy to sell), diversified, and held in your name (or in a structure where access is clear). They may also apply conservative assumptions, for example discounting the current value to allow for market volatility. If the plan relies on selling a single concentrated holding, underwriters may ask more questions than if the strategy uses a diversified portfolio with a long track record.
If investments are overseas, held in trusts, or subject to restrictions, expect additional documentation and potentially a longer process. It’s also common for lenders to prefer a secondary back-up plan, such as partial capital repayment, sale of another asset, or a planned downsizing strategy.
The practical best practice is to agree the repayment strategy early, gather the supporting statements and evidence, and choose lenders known to accept investment-backed repayment plans. That reduces the risk of late underwriting conditions that delay mortgage offer or completion.
Hearthstone Mortgages is a trading name of Hearthstone Advisory Limited (Company Number 10563329) and is authorised and regulated by the Financial Conduct Authority (FCA Reference Number 945282).
Registered office: Europa House, Marsham Way, Gerrards Cross, Buckinghamshire, SL9 8BQ.
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Your home or property may be repossessed if you do not keep up repayments on your mortgage.
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