Access Liquidity Without Selling Your Investments
A Lombard Loan is a flexible financing solution for high-net-worth individuals, offering
access to capital without needing to liquidate your investments. Unlike traditional
mortgages secured against property, Lombard Loans use your existing financial
assets—such as investment portfolios, stocks, bonds, or cash—as collateral.
Whether you need funds for property purchases, business investments, or personal projects, Lombard lending can provide swift access to liquidity while keeping your investments intact.
Your home or property may be repossessed if you do not keep up repayments on your mortgage
Why Choose a Lombard Loan
Access Liquidity Quickly
Lombard Loans allow you to unlock funds without selling your assets, preserving your investment positions while still gaining access to capital for new opportunities.
Keep Assets Invested
By using your investments as security, you can maintain exposure to market growth,
dividends, or interest, and avoid potential tax implications from selling assets.
Flexibility and Control
Lombard lending often comes with:
Diversification and Risk Management
Borrowers can access capital while keeping other investments intact, enabling strategic
portfolio diversification and greater financial flexibility.
How Lombard Loans Work
Lombard Loans are most commonly provided by private banks, wealth managers, and
specialist lenders.
Advantages of Lombard Loans
Advantages of Lombard Loans include quick access to cash, helping you avoid the lengthy processes often associated with selling assets or arranging traditional lending. They also allow you to maintain investment exposure, because your assets can continue to earn returns while being used to secure the loan. In addition, Lombard Loans typically offer flexible terms, letting you draw down and repay as needed, which gives you greater control over cash flow.
They can also support strategic financial planning, as they may be used to fund investments, property purchases, or other high-value opportunities without disrupting your portfolio. Another possible benefit is tax efficiency, since borrowing against assets can help you avoid triggering capital gains taxes or other costs that may arise from liquidating investments.
Risks and Considerations
There are important risks to consider with Lombard Loans. Collateral volatility is a key factor, as asset values can fluctuate and may trigger margin calls or require you to provide additional collateral. Loan-to-value limits set by lenders can also restrict how much you are able to borrow, as these limits are designed to mitigate market risk.
There is also default risk: if repayment terms are not met, the lender may sell the collateral, which could result in a financial loss. Finally, interest costs can be higher than traditional secured mortgages, reflecting the short-term and flexible nature of this type of lending. It’s essential to assess your financial position carefully and seek specialist advice before arranging a Lombard Loan.
Why Use Private Finance for Lombard Lending
With over 20 years’ experience arranging mortgages and secured loans, Private Finance provides whole-of-market access to over 300 lenders, including specialist and private banks. The team offers tailored advice based on your unique financial circumstances, along with dedicated broker support to guide you through every step of the loan process.
Private Finance also brings holistic financial expertise, collaborating with wealth managers and accountants to help secure the most suitable outcome. Clients benefit from competitive terms, quick access to funds, and strategic advice that aligns with long-term financial goals. Book your consultation today or call 0800 652 0971.
Next Steps
Before applying for a Lombard Loan, consider the type and value of assets you can pledge as collateral, as well as your cash flow needs and repayment capacity. You should also review interest rate terms and factor in the potential for margin calls, and think about how the loan fits within your broader investment and financial strategy.
Private Finance will guide you through the process, helping you structure a Lombard Loan that works for your financial profile and objectives.
Your home or property may be repossessed if you do not keep up repayments on your mortgage
