For many years, buying property with cash has been regarded as the strongest position a purchaser can be in. Whether negotiating on a Prime Central London apartment, securing an investment property, or competing against multiple buyers, vendors almost always favour purchasers who can move quickly without relying on a traditional mortgage.

The assumption, however, is that cash buyers simply have millions of pounds sitting in a bank account waiting to be deployed.

In reality, that is rarely how affluent individuals manage their wealth.

Successful entrepreneurs, business owners, investors and high-net-worth families typically have the majority of their capital invested across diversified portfolios rather than held in cash. Selling those investments simply to fund a property purchase can trigger capital gains tax, disrupt long-term investment strategies and potentially mean missing future market growth.

Increasingly, wealthy borrowers are choosing a different approach.

Rather than liquidating their assets, they are borrowing against them through Securities-Backed Lending, often referred to as Lombard lending, allowing them to release substantial liquidity while leaving their investment portfolios largely intact.

Turning Investments Into Immediate Purchasing Power

Securities-backed lending allows eligible investment portfolios to be used as collateral for a borrowing facility.

Depending on the composition of the portfolio, lenders may consider quoted shares, bonds, ETFs, investment funds, discretionary portfolios and cash holdings. Instead of assessing the property being purchased as the primary security, the lender focuses on the quality, liquidity and diversification of the investment assets.

For borrowers with substantial portfolios, this can create access to significant liquidity without requiring the sale of investments.

The result is simple.

Rather than waiting for a conventional mortgage application to progress through affordability assessments, valuations and underwriting, the borrower can often move at the pace of a cash purchaser.

In competitive property markets, that speed can make the difference between securing a property and losing it to another buyer.

Avoiding the Delays of Traditional Mortgage Lending

Traditional mortgage applications remain an excellent solution for many borrowers, but they are not always the fastest.

Lenders may require detailed affordability assessments, multiple years of financial accounts, income verification, property valuations and extensive underwriting before funds are released.

For individuals with complex financial affairs, those processes can become considerably more involved.

Business owners, partners in professional firms, private equity executives, overseas investors and those with international income frequently find themselves explaining financial structures that are perfectly legitimate but fall outside automated underwriting models.

A securities-backed facility approaches the transaction differently.

Because the lending is primarily secured against liquid investment assets, the emphasis shifts away from proving employment income or analysing company accounts. For many high-net-worth individuals, this can significantly reduce the complexity of arranging finance.

Preserving Long-Term Investment Strategies

One of the biggest advantages of Lombard lending is that it allows investors to retain exposure to their investment portfolios.

Selling investments to fund a property purchase may appear straightforward, but it can interrupt carefully planned wealth strategies that have often taken years to build.

Many investors prefer to remain invested while accessing the liquidity they require.

This approach allows them to purchase property today while continuing to benefit from potential long-term investment growth.

For clients who ultimately intend to arrange a conventional mortgage, securities-backed lending can also provide a temporary source of funding, enabling the property purchase to proceed before refinancing onto longer-term borrowing at a later stage.

A Flexible Solution for Complex Borrowers

Securities-backed lending is particularly attractive for individuals whose wealth is not reflected by a regular monthly salary.

Entrepreneurs may have substantial business assets but relatively modest taxable income.

Company directors often retain profits within their businesses.

Partners receive income through drawings rather than traditional employment.

Investors may generate wealth from dividends, carried interest or investment returns.

In each of these situations, traditional mortgage affordability models do not always reflect the client's true financial strength.

Private banks and specialist lenders are often able to look beyond conventional income multiples, assessing the overall balance sheet rather than focusing solely on annual earnings.

Using Borrowing Sensibly

Although securities-backed lending can unlock considerable liquidity, it should always be used as part of a carefully considered financial strategy.

The value of investment portfolios can rise and fall, meaning lenders monitor the level of borrowing against the assets provided as security.

For this reason, experienced borrowers rarely seek to maximise every pound available.

Maintaining a sensible borrowing level provides greater flexibility should markets become more volatile and helps reduce the likelihood of additional security being required in the future.

Like any lending solution, Lombard facilities work best when they are structured conservatively and with a clear exit strategy.

Who Typically Uses Securities-Backed Lending?

While often associated with ultra-high-net-worth families, securities-backed lending is becoming increasingly relevant across a much broader range of clients.

Property investors use it to move quickly on acquisitions before arranging longer-term finance.

Business owners access liquidity without disrupting investment portfolios that form part of their wider wealth planning.

International buyers use it to purchase UK property efficiently while avoiding lengthy cross-border mortgage underwriting.

Professionals with significant investment portfolios but complex income structures find it provides access to borrowing that traditional lenders may struggle to accommodate.

As more lenders enter this market, facilities are becoming available to clients with significantly lower portfolio values than was historically the case, opening the door to a wider group of affluent investors.

Is Securities-Backed Lending Right for You?

Every client's circumstances are different.

The suitability of Lombard lending depends on the size and composition of the investment portfolio, the purpose of the borrowing, the required loan amount and the overall wealth strategy.

In many cases, it can provide an exceptionally efficient way to raise capital while preserving long-term investments. In others, a conventional mortgage, private bank mortgage or specialist lending solution may prove more appropriate.