Yes, interest-only can be available in high net worth lending, but it is assessed more strictly because the lender must be confident the capital will be repaid at the end of the term. The bigger the loan, the more detailed the repayment strategy requirements tend to be.
Interest-only is typically considered where there is a strong, evidence-backed plan such as:
- Sale of the property (often as a secondary strategy)
- Sale of another property
- Liquidation of an investment portfolio
- Pension lump sums (subject to age and policy)
- Other accessible assets with clear evidence
Lenders will usually ask for documentation: investment statements, property valuations, pension projections, and sometimes a conservative assessment of what those assets might be worth in less favourable markets. If the repayment plan relies on investments, the lender may apply haircuts to allow for volatility and will want to know the assets are genuinely accessible.
Some borrowers use part-and-part to balance lower payments with gradual capital reduction. Others choose interest-only to preserve liquidity for business or investment goals. The key is matching your strategy to lenders that understand and accept it, and presenting the evidence cleanly to avoid delays.
Hearthstone Mortgages (trading name of Hearthstone Advisory Limited)
Tel: 01753 463391 | Email: enquiries@hearthstonemortgages.co.uk
Registered office: Europa House, Marsham Way, Gerrards Cross, Buckinghamshire, SL9 8BQ
Company No: 10563329 | FCA FRN: 945282
Warnings:
THINK CAREFULLY BEFORE SECURING DEBTS AGAINST YOUR HOME OR PROPERTY.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
We are a credit broker, not a lender. We may receive commissions that will vary depending on the lender, product or other permissible factors. The nature of any commission model will be confirmed to you before you proceed.