Lombard Loans — Flexible Lending Secured Against Your Investment Portfolio

Lombard Loans — Flexible Lending Secured Against Your Investment Portfolio

Lombard loans — borrow against your investment portfolio with Platinum Global Bridging Finance

A Lombard loan is a form of secured lending where you borrow against the value of your investment portfolio — including equities, bonds, funds, ETFs, and digital assets — without selling the underlying holdings. You retain ownership of your investments, continue receiving dividends and interest income, and access capital for property, business, tax planning, or any other purpose.

The term originates from the medieval Lombard merchants of northern Italy, who pioneered the practice of lending against moveable assets rather than land. Today, Lombard lending is offered by private banks and institutional lenders worldwide and remains one of the most flexible and cost-effective ways for high-net-worth individuals to access liquidity.

At Platinum Global Bridging Finance, we arrange Lombard loans from £250,000 to £750 million as non-recourse facilities, meaning your liability is limited to the pledged collateral. Facilities are structured as interest-only with bullet repayment at maturity.

How a Lombard Loan Works

The mechanics are similar to other forms of asset-backed lending, but Lombard loans are distinguished by the breadth of collateral accepted and the flexibility of the facility structure.

Step-by-step process

You pledge eligible investments — equities, bonds, funds, ETFs, or cryptocurrency — to an institutional lender. The lender assesses the portfolio’s market value, asset composition, liquidity, and volatility profile. Based on that assessment, they advance a loan of up to 65% of the portfolio’s value.

The pledged assets are held by a third-party custodian or placed under a lien for the duration of the loan. You retain beneficial ownership throughout — dividends, coupon payments, and fund distributions continue to flow to you. At maturity, you repay the principal in full (bullet repayment), and the lien on your assets is released.

How LTV is determined

The loan-to-value ratio depends on the type and quality of the pledged assets. Diversified portfolios of liquid, blue-chip securities attract the highest LTVs — up to 65%. More volatile or less liquid assets will receive lower LTVs to account for the additional risk. Here’s how different asset classes are typically treated:

A portfolio that blends several of these asset classes will be assessed on its aggregate risk profile. In general, greater diversification leads to stronger terms because the portfolio’s overall volatility is lower than any single holding.

What Assets Can Be Used as Collateral

One of the defining features of a Lombard loan is the range of assets accepted as collateral — significantly broader than a standard stock loan, which is limited to listed equities.

Listed equities

Shares listed on major exchanges globally — NYSE, NASDAQ, LSE, FTSE, Euronext, HKEX, ASX, TSX, and others. Blue-chip equities with high daily trading volumes attract the strongest terms. For concentrated or single-stock positions, see our dedicated stock loans page.

Bonds

Government bonds (UK gilts, US treasuries, German bunds), investment-grade corporate bonds, and sovereign debt from rated issuers. Bonds typically attract competitive LTVs due to their lower volatility compared to equities. For large bond-only positions, see our institutional bond loans page.

Mutual funds and ETFs

Regulated collective investment schemes with daily pricing and sufficient liquidity. Index-tracking ETFs and large actively managed funds are widely accepted. Smaller, illiquid, or niche funds may not qualify or will attract lower LTVs.

Cryptocurrency

Bitcoin (BTC), Ethereum (ETH), and selected major digital assets. Crypto-collateralised facilities are available at lower LTVs (typically 30 – 50%) reflecting the higher volatility. For dedicated crypto lending, see our crypto backed loans page.

What Can a Lombard Loan Be Used For

Lombard loans are classified as unregulated lending in the UK, which means there are fewer restrictions on how the proceeds are used compared to regulated mortgage or consumer finance. Common uses include:

Property purchase or deposit

Use the loan to fund a residential or commercial property acquisition without selling investments. This is particularly valuable when you want to avoid triggering capital gains tax or when you expect your portfolio to outperform the cost of borrowing. Lombard loans can also be used alongside a traditional mortgage to achieve higher leverage — for example, a 60% LTV mortgage plus a Lombard loan covering the remaining deposit.

Business investment and acquisition

Fund a business acquisition, inject working capital, or invest in a new venture without liquidating your portfolio. The speed of a Lombard facility (1 – 2 weeks) can be a decisive advantage in competitive deal situations.

Tax planning

Raise cash to meet a capital gains, inheritance tax, or income tax liability without selling investments at an inopportune time or triggering further disposals. Borrowing is not treated as a disposal for CGT purposes.

Bridging short-term liquidity gaps

Cover temporary cash flow needs — school fees, estate settlement costs, legal fees, or inter-deal bridging — while keeping long-term investment positions intact.

Portfolio rebalancing and new investments

Deploy capital into alternative asset classes — property, private equity, venture capital — using liquidity raised against existing holdings. Note that some lenders restrict re-investment into listed securities with Lombard loan proceeds.

Lombard Loans vs Other Asset-Backed Lending

Lombard loans sit within a broader family of asset-backed lending products. Understanding the differences helps you choose the right structure for your situation.

When to choose a Lombard loan over a stock loan

If your portfolio includes bonds, funds, or crypto alongside equities, a Lombard loan allows you to pledge the full portfolio rather than only the equity component. The broader collateral base can also support a larger total borrowing amount. If you hold only listed equities and want the lowest possible rate, a stock loan or securities backed lending facility may offer more competitive pricing.

Non-Recourse Lombard Loans

All Lombard loan facilities we arrange are structured as non-recourse. This means your personal liability is limited to the pledged investment portfolio — if the lender liquidates the collateral and the proceeds don’t cover the outstanding loan balance, you owe nothing further.

Non-recourse is particularly valuable in the context of Lombard lending because:

• Downside protection: If markets fall sharply and your pledged portfolio loses value, your exposure is capped at the assets you’ve pledged. Your other wealth, property, and business interests are not at risk.
• Concentrated positions: Borrowers with a large weighting in a single stock or sector can monetise the position while limiting their personal risk if that stock underperforms.
• Crypto volatility: For portfolios that include cryptocurrency, non-recourse eliminates the risk of being personally liable for a shortfall caused by a sharp crypto price decline.

The trade-off for non-recourse protection is typically a lower LTV and/or higher interest rate compared to a recourse facility. We advise every client on whether non-recourse is the right structure for their specific circumstances.

Margin Calls and Risk Management

Because Lombard loans are secured against investments whose value fluctuates daily, lenders set maintenance thresholds to protect their position.

How margin calls work

If the market value of your pledged portfolio drops below the lender’s required collateral coverage ratio, a margin call is triggered. You’ll typically have 2 – 5 business days to respond by pledging additional assets, depositing cash, or repaying part of the loan. If you don’t act within the timeframe, the lender may liquidate some or all of the pledged assets to restore the ratio.

How to minimise margin call risk

We advise every client on structuring appropriate buffers before borrowing. Key strategies include:

• Borrow below maximum LTV: If you qualify for 65% LTV, borrowing at 50% gives you a significant buffer before a margin call would be triggered.
• Diversify the pledged portfolio: A diversified portfolio is less likely to experience the same percentage decline as a concentrated position, reducing the probability of breaching the maintenance threshold.
• Stress-test against historical volatility: Before borrowing, we model how your portfolio would have performed during past market drawdowns (2008 financial crisis, 2020 COVID crash, 2022 rate shock) to ensure you’re comfortable with the margin call risk.
• Hold cash reserves: Maintaining a cash buffer outside the pledged portfolio allows you to respond to a margin call quickly without having to liquidate other investments.

Tax Considerations

Pledging investments as collateral for a Lombard loan is not treated as a disposal for capital gains tax purposes. No CGT liability arises at the point of borrowing, which is one of the primary reasons HNW investors choose Lombard lending over selling assets to raise cash.

When does CGT apply?

A disposal occurs only if pledged investments are sold — whether voluntarily at maturity or involuntarily during a margin call. At that point, any gains become taxable in the normal way.

Is interest tax-deductible?

Interest payments may be tax-deductible if the loan proceeds are used for qualifying business purposes. Interest on capital used for personal expenditure is generally not deductible. The treatment varies by jurisdiction and individual circumstance.

Inheritance tax planning

Some borrowers use Lombard loans as part of broader estate planning — for example, raising capital to make lifetime gifts while retaining the investment portfolio within the estate. The interaction between Lombard lending and IHT is complex and requires specialist tax advice.

We strongly recommend discussing any Lombard loan arrangement with your tax adviser before proceeding. We are finance brokers, not tax advisers.

Indicative Deal Scenarios

Which Banks and Lenders Offer Lombard Loans

Lombard lending is offered by private banks, wealth management divisions of major banks, and specialist institutional lenders. In the UK and Europe, providers include the private banking arms of Swiss, British, and pan-European banks, as well as boutique credit providers who specialise in asset-backed lending.

As an independent broker, we are not tied to any single lender. We work across a panel of providers to source the most competitive terms for each client’s specific portfolio composition and borrowing requirement. This means we can access facilities that may not be available to borrowers approaching a single bank directly, and negotiate terms on your behalf across multiple providers.

You do not need to be an existing private banking client to access a Lombard loan through us.

How We Arrange Lombard Loans

• Initial consultation: We discuss your portfolio composition, borrowing requirement, intended use of funds, and risk appetite. This call is confidential and carries no obligation.
• Portfolio assessment and lender matching: We assess your investments against lender eligibility criteria across our panel, identifying the best-fit providers. Indicative terms are typically provided within 48 hours.
• Term negotiation: Once you’ve selected a facility, we negotiate final terms — LTV, rate, margin call thresholds, and custody arrangements — on your behalf.
• Documentation and custody: We manage the documentation process between you, the lender, and the custodian, reviewing all terms before you sign.
• Funding: Assets are transferred to the agreed custodian and funds are released to your account. Typical turnaround is 1 – 2 weeks from application to funding.

Frequently Asked Questions

What is a Lombard loan?

A Lombard loan is a secured lending facility where you borrow against the value of your investment portfolio — equities, bonds, funds, ETFs, or cryptocurrency — without selling the underlying assets. The term originates from the medieval Lombard merchants of Italy who pioneered asset-backed lending. Today, Lombard loans are offered by private banks and institutional lenders globally.

How does a Lombard loan differ from a stock loan?

A stock loan is secured specifically against listed equities. A Lombard loan accepts a broader range of collateral — including bonds, funds, ETFs, and crypto alongside equities. If your portfolio is equity-only, a stock loan may offer better rates. If you hold a diversified multi-asset portfolio, a Lombard loan lets you pledge the full holdings.

What LTV can I expect?

Up to 65% depending on portfolio composition. Diversified portfolios of blue-chip equities and investment-grade bonds attract the highest LTVs. Crypto holdings and more volatile assets receive lower LTVs. We assess each portfolio individually and provide an indicative LTV within 48 hours.

What does non-recourse mean?

Non-recourse means your liability is limited to the pledged assets. If the lender liquidates the collateral and the proceeds fall short of the outstanding balance, you are not personally liable for the difference. All Lombard facilities we arrange are non-recourse.

Do I need a credit check?

No. Lombard loans are asset-secured — the lending decision is based on the quality and liquidity of your pledged portfolio, not your personal credit history or income. This makes Lombard lending accessible to borrowers with complex income structures, international income, or non-standard financial profiles.

Will I still receive dividends and interest?

Yes. In most Lombard structures, you retain beneficial ownership of the pledged assets, including the right to receive dividends, coupon payments, and fund distributions throughout the loan term.

Can I use a Lombard loan to buy property?

Yes. Property acquisition is one of the most common uses. You can use the Lombard loan for the full purchase price, as a deposit alongside a traditional mortgage, or to bridge a timing gap while selling another property. Because Lombard lending is unregulated, there are fewer restrictions on how the proceeds are used compared to a regulated mortgage.

How quickly can a Lombard loan be arranged?

Typical turnaround from application to funding is 1 – 2 weeks. Straightforward cases with diversified, liquid portfolios may complete faster. Complex structures involving multiple asset classes, multiple jurisdictions, or significant crypto holdings may take longer.

Is a Lombard loan regulated by the FCA?

Generally, no. Lombard lending is classified as unregulated borrowing in the UK because the loan is secured against investments rather than property. This gives both lenders and borrowers more structural flexibility, but also means standard FCA consumer protections may not apply. Working with an experienced broker who understands the risks and can advise on appropriate structures is important.

Can international clients apply?

Yes. We arrange Lombard loans for clients globally. The portfolio can be held on any major exchange, and the loan can be denominated in GBP, USD, EUR, CHF, or other major currencies. Foreign nationals and those with international income sources are welcome.

Related Services

Lombard lending is one part of our broader asset financing capability. Depending on your portfolio and objectives, you may also benefit from:

• Stock Loans — single and multi-stock facilities against listed equities, from 3 – 4% fixed
• Securities Backed Lending — broader facilities secured against shares, bonds, and funds
• Portfolio Loans — borrowing against a diversified investment portfolio
• Institutional Bond Loans — capital raised against corporate and government bond holdings
• Pre-IPO Loans — financing against shares in companies awaiting public listing
• Unlisted Stock Loans — lending against privately held or thinly traded equities
• Crypto Backed Loans — dedicated lending against Bitcoin, Ethereum, and other digital assets
• Bridging Finance — short-term property finance for time-sensitive transactions

About Platinum Global Bridging Finance

Platinum Global Bridging Finance is a specialist high-net-worth finance broker with over 15 years of experience arranging bespoke lending solutions. We operate from offices at 64 Knightsbridge, London SW1X 7JF and Railway House, Urmston, Manchester M41 6NA, serving clients across the UK, Europe, and internationally.

Our Lombard lending team works with private banks, institutional lenders, and specialist credit providers to structure competitive, transparent facilities. Every client receives a named adviser, a clear explanation of terms and risks, and ongoing support throughout the loan term.