Lombard Lending provides HNW clients with access to funding by using their marketable securities as collateral for the loan.

For those High Net Worth clients with existing private banking facilities, you will see that your bank will offer “Lombard Loans” or similarly styled offerings, ultimately what it offers is an alternative finance option for those with marketable securities.

What are marketable securities? Ultimately they are shares in public companies, bonds, gilts or other similar money market instruments.

So what you have is a loan against a liquid asset that enables you to fund a purchase, provide personal liquidity or to provide new capital to invest. All without giving up ownership of the underlying asset. You could think of this as a buy to let mortgage on your shares.

So you have an investment opportunity that you wish to make the most of yet you do not have all of the cash required to follow up.

With limited time to action, a Lombard Loan can be highly effective in generating the required liquidity without selling the underlying asset.

Lombard loans are cost effective and flexible lending propositions and most lenders will offer loans in all major currencies and range of maturity dates, from 1 to 12 months.

At the end of the period you can either repay the loan or roll it over for another period.

One key aspect is the cost of lending, with a high level of security from the collateral offered, interest rates can be highly competitive

Lender rates are dependent on the loan value secured against the portfolio, together with the quality of the securities being offered.

For our clients lenders are offering finance against minimum portfolio values of £1m with minimum lending requirements of £500,000.

To find out more about Lombard Lending and how it could support your liquidity, investment or purchase objectives contact our team below.