Lombard lending – Borrowing against your investment portfolio
Access liquidity without disrupting your investment strategy
Weatherbys Private Bank’s Lombard lending allows you to borrow against eligible investment portfolios, providing flexible access to capital while your investments remain in place.
Whether you are purchasing property, funding a business opportunity, managing a tax liability or planning for the future, Lombard lending can provide a practical alternative to selling investments.
We take a personal approach to lending and work closely with you to understand your circumstances and determine whether Lombard lending is right for your needs.
What is Lombard lending?
Lombard lending is a form of borrowing secured against an existing investment portfolio. Rather than selling investments to raise funds, eligible investments can be used as security for a lending facility.
The facility works in a similar way to an overdraft. You can draw funds when required, repay borrowing when convenient and only pay interest on the amount used.
For investors who wish to maintain their investment strategy while accessing liquidity, Lombard lending can offer a flexible and efficient solution.
Why borrow against investments instead of selling them?
When a financial opportunity or requirement arises, selling investments is often the first option considered. However, this may not always be the most effective approach.
Lombard lending can help you:
- Access funds quickly when opportunities arise.
- Avoid disrupting a carefully constructed investment strategy.
- Maintain exposure to potential future investment growth.
- Avoid transferring assets or changing custodians.
- Benefit from a flexible facility that can be drawn and repaid as needed.
Download our Lombard lending brochures
Whether you are a Private Client or an intermediary, choose the appropriate version to explore Lombard lending at Weatherbys.
When Lombard lending may be appropriate
Property purchases
Secure funding to buy a new home, purchase a property as part of a wider portfolio or support a property investment opportunity.
Business investment
Access capital quickly to support a business acquisition, expansion, new venture or other commercial opportunity.
Tax planning and liabilities
Manage significant tax payments without needing to liquidate investments at short notice.
Estate and succession planning
Support wealth transfers, gifting strategies and broader estate planning objectives.
Borrowing to invest
Some investors use Lombard lending to increase investment capacity through gearing. This approach carries additional risk and may not be suitable for everyone.
Key features of Weatherbys' Lombard lending
- Secured against eligible investments.
- Flexible revolving facility.
- Operates similarly to an overdraft.
- Maximum loan-to-value of up to 50%.
- Competitive pricing.
- Ongoing monitoring throughout the life of the facility.
- Available to individuals, trusts and limited companies.
How our Lombard lending process works
Taking out a Lombard lending facility with Weatherbys is designed to be straightforward and relationship-led.
Step 1: Initial conversation
It starts with a call with a private banker. They will talk through your situation, what you need and whether Lombard lending is likely to be suitable for you.
Step 2: Portfolio review
We review the eligible investments within your portfolio and assess an appropriate borrowing level based on portfolio composition, diversification and risk profile.
Step 3: Access to funds
Once the facility is in place, it operates like an overdraft secured against your portfolio. You can access funds as needed, with the flexibility to repay and reuse the facility over time. We will continue to monitor the lending throughout its lifetime and notify you if there are any changes.
Speak to us about Lombard lending
Every client’s circumstances are different. That is why we take the time to understand your objectives before assessing whether Lombard lending is suitable for you.
Whether you are looking to unlock liquidity from an investment portfolio or simply want to understand the options available, our award-winning private banking team can help.
Lombard lending FAQs
Yes. Lombard lending allows eligible investment portfolios to be used as security for a borrowing facility, providing access to liquidity without selling investments.
Selling investments releases capital but may disrupt your investment strategy. Lombard lending allows you to access funds while keeping investments in place.
Common uses include property purchases, business investment, tax liabilities, estate planning and broader liquidity requirements.
Weatherbys can consider portfolios held elsewhere, subject to review and eligibility requirements.
Borrowing limits depend on the size, composition and risk profile of the portfolio being used as security. A maximum loan-to-value of up to 50% may be available.
Facilities may be available to individuals, trusts and limited companies.
A margin call occurs when the value of investments securing the borrowing falls below agreed levels, requiring additional funds or a reduction in borrowing.
What you need to know
The facility operates in a similar way to an overdraft. You draw what you need and only pay interest on the amount used. The amount of borrowing will depend on the size and composition of your portfolio, and we would agree appropriate limits and terms with you.
There are some key risks to be aware of: if the value of your investments falls, you may be required to reduce the borrowing or provide additional funds at short notice (a margin call). If a margin call is not met, we may need to sell investments to bring the position back within agreed limits. Your banker will discuss this type of lending to ensure it is appropriate for you.
Subject to suitability and portfolio composition, the interest rate is 1.99% over Base Rate, with a 1% arrangement fee.
Tax laws may change and taxation will vary depending on your own personal circumstances.