Can I use investments such as SIPP, SSAS or even stocks and shares towards mortgage affordability?

Can I Use My SIPP or SSAS to Get a Residential Mortgage?

Yes

You can use investments such as your SIPP, SSAS or even stocks and shares to support a residential mortgage application—especially for interest-only options—if you meet specific lender criteria. Suffolk Building Society and LiveMore offer tailored products that may suit your needs.

Using a Self-Invested Personal Pension (SIPP) or Small Self-Administered Scheme (SSAS) to support a residential mortgage is possible, but it requires careful alignment with lender criteria.

In this blog, we explore how lenders such as Suffolk Building Society and LiveMore approach this, with examples based on their latest interest-only mortgage products at 60% Loan-to-Value (LTV).

🏦 What Are SIPP and SSAS?

• SIPP: A flexible personal pension allowing you to choose and manage your investments.
• SSAS: A pension scheme typically used by company directors, offering broader investment options including commercial property.

While you can’t use pension funds directly to buy a residential property, lenders may accept your pension income or assets as part of your affordability assessment.

How do lenders treat an investment such as SIPP for mortgage affordability?

Generally, lenders will use a percentage of the pot.

Suffolk: will use 80% of the pot and divide it by the desired mortgage term. The shorter the term, the higher the income and the greater the borrowing (when taking an interest only mortgage. If using repayment this is more complex)

e.g. £100,000 SIPP pot and 10 year mortgage term

80% of the pot = £80,000/10 year mortgage term = £8000 per year used as income for mortgage affordability.

Livemore: Have a calculator for this which applies similar maths to the above.

Other lenders: Some other s may simply use a percentage of the fund value e.g. 3% and use this as presumed income.

E.g. £100,000 SIPP pot – 3% assumption = £3000 per year used as income.

Can other investments be used?

Yes, more lenders such as Saffron, Afin bank and others can use investments such as stocks and shares ISA’s towards affordability.

Again they tend to use a percentage of the pot value such as 3% as a presumed income.

📝 Suffolk Building Society Criteria

Suffolk Building Society offers interest-only mortgages where borrowers must demonstrate a credible repayment strategy. Acceptable strategies include:

• Sale of the mortgaged property or another.
• Pension lump sum (including SIPP/SSAS)
• Investment portfolio

Key criteria:

• Maximum LTV: 80%
• Term: Up to 40 years
• Age: No maximum age at application or end of term.

Example: £100,000 Interest-Only Mortgage

• Product: 2-Year Fixed Interest-Only
• Rate: 5.15% fixed
• Monthly payment: £430 per month approx.
• Fees:

• Arrangement fee: £999
• Valuation fee: based on property value

Sources: Suffolk Interest Only Mortgages, Suffolk Lending Criteria

🧓 LiveMore Criteria (For Ages 50+)

LiveMore specialises in later-life lending, including Retirement Interest Only (RIO) and standard interest-only mortgages. Pension income—including from SIPP or SSAS—is a key part of their affordability model.

Key criteria:

• Age: 50+
• Income: Pension income accepted
• Maximum LTV: 75%
• Term: Flexible (standard interest-only has a fixed term; RIO does not)

Example: £100,000 Interest-Only Mortgage

• Product: Standard Interest-Only, 5-Year Fixed
• Rate: 5.59% fixed
• Monthly payment: £470 per month approx.
• Fees:

• Product fee: £995
• Valuation fee: £300 (approximate)

Total fees: ~£1,295

Sources: LiveMore Product Guide, LiveMore Mortgage Products

✅ Can You Use Your SIPP or SSAS?

Yes—if your pension can be used as a repayment vehicle or income source, and you meet the lender’s affordability and age criteria. Suffolk and LiveMore both accept presumed income from pension pots and allow interest-only structures that suit SIPP/SSAS holders.

Other considerations

You can see a fuller write up of the mortgage types to consider when borrowing in or into retirement here: Over 50’s Lending

Survivorship

Where you are taking a mortgage jointly with someone else you need to think carefully about how the survivor could afford the mortgage if either of you were to pass away.

For a retirement interest only mortgage (RIO) lenders must use the lowest applicants income only, when calculating what you can borrow, under FCA rules.

However non “RIO” mortgages do not have to do this (such as those offered by Suffolk). That said, you should still consider it carefully ensuring there is a slush fund to pay the mortgage for a period should the survivor need to downsize. You should also consider downsizing earlier rather than later if one survivor could struggle to afford the payments on their sole income.

Repayment mortgages

Don’t rule out a repayment mortgage. Some lenders like Suffolk offer their cheapest rates only on repayment. With a 40 year term, this could result in cheaper monthly payments than interest only, solely because the interest rate on the repayment deal is that much lower.

💡 Final Thoughts

Using your SIPP or SSAS to support a residential mortgage is viable with the right lender. Suffolk Building Society and LiveMore offer competitive interest-only options at 60% LTV, with monthly payments around £430–£470 on a £100k mortgage. Always consult a financial adviser to ensure your pension strategy aligns with mortgage repayment requirements.

Want help comparing more interest-only mortgage options? Let’s explore what fits your financial goals.

You can book an appointment with one of our advisers here Book A Consultation