What are Lombard Loans?
Lombard loans are a type of secured credit facility that allows individuals to borrow against their investment portfolio, such as stocks, bonds, ISAs, or GIAs, without selling their holdings.
The client keeps the assets.
They keep the income.
They keep the growth.
But they also gain something just as powerful: fast access to capital.
Key Facts about Lombard Loans
- Loan values: £65,000 to £5 million+
- Loan-to-value (LTV): typically 50%–70%
- Eligible collateral: liquid portfolios (pensions excluded)
- Rates: from Bank of England + 1.95% (typical all-in 2.5%–4.5%)
- Digital onboarding, with funds often available within 72 hours
With P1, this is delivered in partnership with Firenze, offering advisers and clients end-to-end support, clear fees, and rapid decisions.
Why Are Lombard Loans Relevant Now?
In a tightening credit market and uncertain economic climate, maintaining liquidity is essential. Traditional lending can be slow, invasive, or costly:
- Mortgages take time and tie up property
- Bridging loans can be expensive (6–12%)
- Unsecured loans often carry high rates (7%+)
Lombard lending provides another way, a flexible, cost-effective solution that protects long-term strategies while solving short-term liquidity needs.
- Access capital without selling assets
- Preserve tax wrappers and CGT allowances
- Retain exposure to market upside
- Unlock funds quickly, often within days
Key Benefits for Clients
Immediate Liquidity Without Liquidation
Unlock capital without triggering a tax event or losing exposure to markets.
Competitive Interest Rates
Secured lending often comes with lower costs than unsecured alternatives.
Preserve Investment Strategies
Maintain long-term positions and ride potential market gains.
Flexible Usage
Use the funds for property purchases, tax bills, business needs, or family support, without disrupting your portfolio.
How Does It Compare?
| Lending Type | Collateral | Typical Rate | Flexibility | Best Use Case |
|---|---|---|---|---|
| Unsecured Loan | None | 7%+ | Low | Consumer credit |
| Mortgage | Property | 3–5% | Low–Medium | Buying property |
| Bridging Loan | Property | 6–12% | Medium | Short-term property funding |
| Lombard Loan | Portfolio assets | 2.5–4.5% | High | Liquidity, short-term needs |
Real-World Scenarios
Buying Property
Need to secure a deposit quickly? A Lombard loan can give you the cash you need while arranging longer-term financing. Keep your investments intact, and once your mortgage or other funds are in place, repay the loan.
Covering a Tax Bill
If a big tax bill arrives at the wrong time, selling investments could mean paying extra tax or missing out on growth. A Lombard loan lets you cover the bill quickly and repay later, without disturbing your portfolio.
Business Needs
Business owners often face short-term funding gaps or new opportunities. Instead of waiting for slow bank approvals, a Lombard loan provides fast access to working capital while your investments keep working for you.
Supporting Family
Whether helping a child buy a home, funding education costs, or covering a family expense, a Lombard loan offers a quick, flexible way to access funds without having to sell down investments.
Staying Invested
Markets move fast. Selling at the wrong time could mean losing out on future gains. A Lombard loan gives you the liquidity you need while allowing your portfolio to remain invested.
Bridging to Future Funds
If you’re waiting for a known cash event; such as the sale of a property or business, a Lombard loan can bridge the gap, giving you access to funds now, with the option to repay once proceeds come through.
Risks & Considerations
While powerful, Lombard lending isn’t suitable for everyone. Advisers and clients must weigh:
- Margin calls: Falling asset values may require top-ups or early repayment.
- Asset eligibility: Illiquid or volatile holdings may be excluded.
- Fees & interest: Transparent, but still a cost.
- Regulatory nuances: Advisers must ensure wrappers and permissions are respected.
That’s why working with an experienced adviser and platform partner is essential.
Is a Lombard Loan Right for You or Your Clients?
For those seeking liquidity without disruption, Lombard loans provide a great solution; flexible, efficient, and increasingly accessible.
Let’s Talk
If you’re considering Lombard lending for yourself or a client, contact us today
to explore whether it’s the right fit for your financial strategy.
Risk Warning
Lombard loans are secured against investment portfolios.
If the value of those assets falls, you may be required to provide additional collateral or repay part of the loan at short notice.
Failure to do so could result in your investments being sold to repay the outstanding balance, potentially at a loss.
This information does not constitute financial advice.
Lending is subject to status, eligibility, and credit approval. Terms and conditions apply.
