Wealthy Homeowners Are Borrowing Against Their Property – Enness Comments in Financial Times

Wealthy homeowners have increasingly used property-backed borrowing to access capital for investments, including bonds, equities, alternative investments and commercial property.

Low borrowing costs have created opportunities for some homeowners to raise finance against existing property assets while keeping other capital available. For mortgage-free homeowners, this can provide access to liquidity that may be deployed elsewhere, subject to individual circumstances, risk appetite and the availability of suitable lending.

Historically, homeowners have often remortgaged to fund property improvements or expand investment portfolios. However, changing tax rules, regulation and slower house price growth have encouraged some borrowers to consider alternative uses for property-backed finance.

Enness has supported high-net-worth clients seeking to structure borrowing around wider wealth and investment strategies. Depending on the client’s circumstances, capital raised against property may be used to support business interests, investment opportunities or broader liquidity requirements.

For wealthy borrowers with substantial equity, property can provide an important source of collateral when structuring bespoke finance. However, borrowing against a primary residence or other property carries risk, particularly where funds are used for investments that may fluctuate in value.

Read the original article on Financial Times.