Free Consultation. Free Finance Assessment. No Obligation.
At Willow Private Finance, there isno charge to speak to one of our specialist advisorsandno charge for us to assess your requirements and identify suitable finance solutions.
We'll take the time to understand your circumstances, review your objectives and explore the options available to you before you decide whether you want to proceed.
Should you wish to move forward with a recommended solution,any applicable fees will be clearly explained and agreed in advance, ensuring complete transparency from the outset.
Once instructed, we'll manage the process from application through to completion, liaising with lenders, solicitors, valuers and other professionals involved in the transaction to help secure the funding you require.
Lombard Lending Explained: The 2026 UK Guide for HNW Clients
Lombard lending, also known as securities-backed lending (SBL), allows investors to borrow against the value of their investment portfolio without selling their assets. Private banks and specialist lenders typically lend against shares, bonds, funds, ETFs, and cash portfolios, providing flexible liquidity for property purchases, business opportunities, tax planning, and other wealth management objectives.
Who Is Lombard Lending Suitable For?
Lombard lending can be highly effective for financially sophisticated borrowers who hold a substantial investment portfolio and want access to liquidity without selling long-term assets. However, it is not suitable for every client or every portfolio.
Well Suited For
High-net-worth and ultra-high-net-worth individuals with substantial investment portfolios.
Clients who need liquidity without selling investments.
Property buyers looking to complete quickly while keeping their portfolio intact.
Entrepreneurs and business owners requiring short or medium-term capital.
Family offices, trusts and wealth planning structures seeking flexible funding.
International clients with diversified portfolios requiring UK-based finance.
Investors funding tax liabilities, estate planning, acquisitions or bridging needs.
Generally Not Suitable For
Borrowers with little or no investment portfolio to use as security.
Clients seeking maximum leverage or very high loan-to-value borrowing.
Investors with highly speculative, illiquid or concentrated holdings.
Borrowers without a clear repayment or wealth management strategy.
Clients uncomfortable with margin calls or market-related borrowing risk.
Investors whose portfolio is mainly single-stock or highly volatile assets.
Borrowers who require unsecured lending with no assets pledged as collateral.
At a glance:
Lombard lending is best suited to clients with diversified, liquid investment portfolios who want to access capital without disrupting their long-term investment strategy. It is less appropriate where assets are limited, concentrated, highly volatile or where the borrower has a low tolerance for margin-call risk.
Typical Lombard Lending Terms
Every lender assesses portfolios differently, and actual terms depend on the assets held, borrower profile, portfolio concentration, jurisdiction and prevailing market conditions. However, the following ranges are commonly seen within the UK Lombard lending market.
Loan-to-Value (LTV)
50% - 75%
Diversified portfolios often achieve higher lending levels, whilst concentrated or higher-risk portfolios may attract lower loan-to-value ratios.
Interest Margin
Base Rate + Margin
Pricing varies according to portfolio quality, asset concentration, facility size, jurisdiction and lender appetite.
Facility Types
Flexible Structures
Interest-only facilities, revolving credit lines, evergreen facilities and fixed-term structures are commonly available.
Eligible Collateral
Investment Assets
Shares, bonds, ETFs, investment funds, discretionary portfolios, cash holdings and certain offshore investment structures.
Key Risks to Understand
Portfolio values can fall during periods of market volatility.
Margin calls may require additional collateral or partial loan repayment.
Concentrated portfolios may receive lower lending limits.
Interest costs can increase if underlying benchmark rates rise.
Failure to meet lender requirements could result in assets being sold to reduce borrowing exposure.
How High-Net-Worth Clients Unlock Liquidity Without Disrupting Their Portfolio
Lombard lending has moved beyond its historical positioning as a niche private banking facility and is now firmly embedded within broader high-net-worth financial planning. This shift is closely linked to current market conditions. The Bank of England’s base rate has remained elevated relative to the ultra-low environment of the previous decade, while inflationary pressures continue to influence lender pricing and funding costs. According to the latest updates from the Bank of England, monetary policy remains cautious, with affordability and risk management still central to lending decisions.
At the same time, the Financial Conduct Authority (FCA) has increased its focus on responsible lending frameworks and transparency across complex financial products. While Lombard lending sits largely within private banking rather than mainstream regulated mortgage activity, the broader regulatory tone has influenced how institutions assess leverage, liquidity, and client risk exposure. This is particularly relevant where borrowing is secured against volatile, mark-to-market assets.
Against this backdrop, many high-net-worth individuals find themselves in a familiar position: asset-rich but liquidity-constrained. Investment portfolios, business interests, and property holdings continue to perform long-term roles within wealth strategies, but immediate liquidity needs—whether for tax, acquisition, or opportunity—have not diminished. Selling assets in 2026 can be inefficient, particularly in volatile markets where timing becomes critical and tax liabilities may be triggered unnecessarily.
This is where Lombard lending has gained traction. Rather than liquidating investments, borrowers can leverage them. At Willow Private Finance, this shift is increasingly evident across both domestic and international client profiles. Clients are no longer asking whether portfolio-backed lending is available, they are focused on how it can be structured correctly within a wider strategy.
The Lombard Lending Stress-Test: Visualise Your Borrowing Power
When you’re leveraging a high-value portfolio, the most important number isn't your current balance, it’s your "margin for error." We developed thisSBL Portfolio Simulation Suite, below, to provide a clear-eyed look at how 2026 credit committees view your assets.
By simulating the specific LTV ceilings and volatility buffers required in today’s market, this tool helps you identify the sweet spot between unlocking liquidity and maintaining a safe distance from a margin call. Use it to calculate your Crash Cushion and see exactly how much market turbulence your strategy can withstand before you need to inject more capital. It is about replacing "what if" with a technical roadmap for your next acquisition.
*Indicative modelling based on typical private bank volatility thresholds.
Loan Requirements
Market Cushion Before Indicative Margin Call
0%
40% Current LTV
Max Lending Limit:£0
Annual Interest Cost:£0
Indicative Margin Call Threshold
Call triggers at portfolio value:£0
Indicative analysis only. Actual Lombard lending terms, loan-to-value ratios, pricing and margin call thresholds vary by lender, portfolio composition, jurisdiction, borrower profile and market conditions.
Market Context
The current lending environment is materially different from that of the 2010s. Borrowing costs are structurally higher, lender risk appetite is more selective, and funding lines are being managed more tightly. While the base rate has stabilised, lenders continue to reprice products with limited notice, particularly where funding conditions or geopolitical factors shift.
Recent commentary from the Bank of England highlights continued caution around inflation persistence and global uncertainty, which feeds directly into liquidity pricing across both retail and private banking channels.
This has several implications for Lombard lending. Firstly, the relative attractiveness of secured borrowing against liquid assets has increased. Compared to unsecured or property-based short-term finance, Lombard facilities often offer more efficient pricing due to the quality and liquidity of the underlying collateral.
Secondly, lender behaviour has become more risk-sensitive. Private banks are placing greater emphasis on portfolio composition, diversification, and downside protection. Concentrated equity positions, illiquid funds, or higher-volatility assets are subject to more conservative lending terms than would have been typical five to ten years ago.
There is also a broader behavioural shift among high-net-worth borrowers. Rather than treating borrowing as a standalone transaction, clients are increasingly viewing their financial position holistically. Investment portfolios, property holdings, and liquidity facilities are being structured together, rather than in isolation.
This aligns with trends seen across other areas of property finance, particularly where borrowers are combining multiple strategies.
Explore How Much You Could Borrow Against Your Portfolio
Every portfolio is different. The amount you can borrow depends on the value of your investments, asset mix, diversification, concentration levels and the lender's risk appetite.
Willow Private Finance works with private banks and specialist lenders to help high-net-worth clients unlock liquidity without selling long-term investments. We can provide an initial assessment of your portfolio, likely borrowing capacity and potential lending structures.
Lombard lending is, at its core, a form of secured borrowing against an investment portfolio. The borrower retains ownership of the underlying assets while granting the lender a legal charge over them.
The process begins with an assessment of the portfolio. Lenders evaluate:
Asset type (equities, bonds, funds)
Liquidity and tradability
Diversification
Historical volatility
Based on this assessment, a loan-to-value (LTV) ratio is applied. In most cases, this ranges between 50% and 60%, although stronger portfolios with high-quality, diversified holdings may achieve higher thresholds.
The facility itself is typically structured as either:
A term loan with a defined repayment schedule
A revolving credit facility allowing drawdown and repayment flexibility
One of the defining characteristics of Lombard lending is speed. Because the collateral is liquid and easily valued, underwriting can be completed quickly. In many cases, funds can be deployed within days.
Unlike traditional mortgage lending, income is not the primary driver. Instead, the focus is on asset quality and collateral strength. This makes Lombard lending particularly relevant for clients whose wealth is not reflected in conventional income streams, such as entrepreneurs or investors.
However, the simplicity of the concept should not obscure the importance of structure. Facility terms, margin thresholds, and collateral eligibility can vary significantly between lenders.
What Lenders Are Looking For
In 2026, lender scrutiny has become more nuanced. Private banks are not simply assessing whether a portfolio has value, they are assessing how resilient that value is under stress.
Key considerations include diversification. A portfolio concentrated in a single stock or sector introduces higher risk and will typically attract lower lending levels. By contrast, a well-diversified portfolio of large-cap equities and investment-grade bonds is viewed more favourably.
Liquidity is equally critical. Assets that can be readily sold in the open market provide greater security to the lender. Illiquid holdings, private equity positions, or niche funds may either be excluded entirely or heavily discounted.
Volatility is another central factor. Higher volatility increases the likelihood of margin calls, which in turn influences how aggressively a lender is willing to structure the facility.
There is also increasing focus on the broader client profile. While Lombard lending is collateral-driven, lenders still consider:
Overall net worth
Existing leverage
Jurisdictional exposure
Relationship depth
This reflects a wider trend across lending markets, where holistic risk assessment is becoming the norm rather than the exception.
Common Challenges and Misconceptions
Despite its growing popularity, Lombard lending is frequently misunderstood.
One of the most common misconceptions is that it represents “low-risk” borrowing simply because it is secured. In reality, the risk profile is different rather than reduced. The borrower is exposed to market movements, and this exposure can become material if leverage is not managed carefully.
Another issue is overestimating borrowing capacity. While headline LTV ratios may appear attractive, the practical limits are often dictated by portfolio composition and lender-specific policies.
There is also a tendency to underestimate the operational mechanics of margin calls. When asset values fall, lenders act quickly to protect their position. Borrowers who have not planned for this may be forced into reactive decisions, including asset sales at unfavourable times.
Finally, many borrowers approach Lombard lending as a standalone transaction rather than as part of a broader strategy. This can lead to inefficiencies, particularly where the facility interacts with other borrowing structures or tax considerations.
Where Most Borrowers Inadvertently Go Wrong in 2026
The most significant issues rarely arise from the concept of Lombard lending itself, but from how and when it is implemented. Borrowers often engage with lenders after a decision has already been made, whether to fund a property purchase, meet a tax liability, or access liquidity quickly. At that stage, the focus shifts to execution rather than structure.
This sequencing creates risk. Without a clear credit narrative and properly aligned collateral strategy, applications may be assessed sub optimally. Different lenders interpret the same portfolio in different ways, and the absence of a coordinated approach can lead to inconsistent outcomes or unnecessary constraints.
In 2026, this is further compounded by tighter lender oversight and increased sensitivity to volatility. Facilities that may have been acceptable in previous years are now subject to more detailed scrutiny, particularly where leverage levels are higher or asset composition is less conventional.
This is typically the point at which Willow Private Finance is engaged, before another lender is approached, to review structure, sequencing, and lender fit.
Structuring Strategies That Improve Approval Odds
Effective Lombard lending is defined by structure rather than availability.
A conservative approach to leverage is one of the most important factors. While lenders may offer higher LTV ratios, maintaining a buffer below these thresholds reduces the likelihood of margin calls and provides greater flexibility in volatile markets.
Diversification also plays a key role. Where portfolios are concentrated, restructuring or rebalancing may improve lending terms significantly. This does not necessarily mean altering investment strategy, but rather understanding how different assets are treated from a lending perspective.
Timing is another consideration. Aligning Lombard lending with broader financial events—such as property acquisitions or refinancing, can improve overall efficiency. For example, bridging liquidity through a Lombard facility before transitioning to longer-term finance is a common approach.
Finally, lender selection is critical. Not all private banks operate in the same way, and differences in policy, appetite, and pricing can materially affect outcomes.
Learn More
Explore Our Complete Guide to Securities-Backed Lending
Lombard lending is about far more than borrowing against an investment portfolio. Facility structure, loan-to-value ratios, portfolio diversification, margin call management and private bank underwriting can all materially influence how much you can borrow and how resilient the facility remains during changing market conditions.
Our comprehensive Securities-Backed Lending Hub explains how private banks assess different asset classes, how Lombard facilities are structured, the risks borrowers should understand, and the strategies high-net-worth clients use to unlock liquidity while preserving long-term investment portfolios.
Every Lombard lending facility is structured around the client's assets and objectives. These real client case studies demonstrate how securities-backed lending can unlock substantial liquidity while allowing investors to retain ownership of their portfolios and continue benefiting from long-term market growth.
Lombard lending is a form of secured borrowing that allows you to raise finance against an eligible investment portfolio without selling your assets. The lender takes security over the portfolio while you retain ownership, enabling you to access liquidity for property purchases, business investments, tax liabilities or other financial objectives.
2. What types of investments can be used as security for a Lombard loan?
Most lenders will consider diversified portfolios containing listed shares, investment-grade bonds, ETFs, unit trusts, mutual funds and discretionary investment portfolios. Eligibility varies between lenders, with liquid, diversified assets generally attracting the most favourable lending terms.
3. How much can I borrow against my investment portfolio?
The amount you can borrow depends on the composition, diversification and volatility of your portfolio. Many facilities are structured between 50% and 60% loan-to-value (LTV), although high-quality, well-diversified portfolios may qualify for higher lending levels with some private banks.
4. How quickly can a Lombard lending facility be arranged?
Because the loan is secured against readily valued investment assets rather than property, Lombard lending can often be arranged much faster than traditional finance. Subject to lender requirements and documentation, funds may be available within a matter of days.
5. Do I need a high income to qualify for Lombard lending?
Not necessarily. Unlike conventional mortgages, Lombard lending is primarily collateral-driven. While lenders will review your overall financial position, the strength, quality and liquidity of the investment portfolio are usually more important than employment income alone.
6. What is a margin call and why is it important?
A margin call occurs if the value of the investment portfolio falls below the lender's required security threshold. The borrower may be asked to provide additional security, reduce the outstanding loan or partially repay the facility. Understanding how margin calls work is essential before taking out any Lombard loan.
7. Why do different lenders offer different Lombard lending terms?
Private banks each have their own lending policies, risk appetite and approach to assessing investment portfolios. The same portfolio may receive different loan-to-value ratios, pricing and borrowing limits depending on the lender, making specialist lender selection particularly important.
8. Can Lombard lending be used to buy property?
Yes. Lombard lending is increasingly used to fund residential and investment property purchases, particularly where speed is important. Many borrowers use the facility to purchase as a cash buyer before arranging longer-term finance or as part of a wider wealth management strategy.
9. What are the biggest mistakes borrowers make with Lombard lending?
Common mistakes include borrowing to the maximum available loan-to-value, underestimating the impact of market volatility, overlooking the possibility of margin calls and approaching lenders without considering which institution is best suited to their portfolio and objectives.
10. How can borrowers improve their chances of securing a Lombard lending facility?
Preparing a well-structured application, maintaining sensible leverage, ensuring the portfolio is appropriately diversified where possible, and selecting a lender whose criteria align with the portfolio can significantly improve approval prospects. Professional structuring advice before approaching lenders often leads to better terms and a smoother process.
Speak to Willow Private Finance
If you're considering borrowing against an investment portfolio, our specialists can assess your circumstances, explain how different lenders are likely to view your assets, and identify the most suitable Lombard lending solution.Contact Willow Private Finance today for a confidential discussion about structuring a facility that supports your wider financial objectives.
Tailored advice for individuals, businesses and professional advisers seeking sophisticated financial solutions.
At Willow Private Finance, we understand that every client has different ambitions, financial circumstances and long-term objectives. Whether you are purchasing property, refinancing existing borrowing, protecting your family or business, or looking to unlock wealth through specialist lending, we build solutions around your individual needs rather than forcing you into standard products.
As an independent, whole-of-market brokerage, we provide access to residential mortgages, buy-to-let finance, bridging loans, development finance, commercial lending, private banking and Lombard lending facilities, alongside a comprehensive range of personal and business protection solutions. Our expertise extends to UK and international clients, high-net-worth individuals, company directors, investors, expatriates and borrowers with complex financial structures.
By combining deep technical expertise with relationships across mainstream lenders, specialist lenders and private banks, we help clients secure funding, structure borrowing efficiently and protect the assets, income and people that matter most. Whatever stage of your financial journey you are at, our team is here to provide clear, strategic advice that delivers confidence and long-term value.
From mortgages and private banking to Lombard lending, business finance and protection planning, Willow Private Finance delivers bespoke solutions for even the most complex financial requirements.
The UK property finance market moves quickly. Mortgage rates change, lenders update criteria, specialist products launch and market conditions evolve every week. Keeping on top of these developments can be difficult, whether you're a homeowner, landlord, developer, investor or professional adviser.
Our free weekly briefing brings together the stories that matter most, alongside expert commentary from Willow Private Finance, helping you stay informed without having to monitor multiple news sources.
Weekly summary of the UK's biggest property finance stories
Residential, buy-to-let, bridging and development finance updates
Private banking, Lombard lending and HNW market insights
UK expat and overseas buyer developments
Market commentary from experienced finance specialists
Free to subscribe with no obligation
Delivered every Week.
Join a growing community of homeowners, investors, developers, accountants, solicitors, estate agents and wealth advisers receiving Willow's weekly Property Finance Briefing.
About the Author
Wesley Ranger is the Founder and Director of Willow Private Finance. With over two decades of experience in specialist lending, Wesley has worked with a large international bank and a national brokerage before establishing Willow. He has built a reputation for crafting innovative finance solutions for high-net-worth clients, leveraging his deep understanding of private banking. Wesley frequently writes about complex mortgages, private client finance, and wealth strategies, sharing insights drawn from real cases and industry developments. His expertise ensures that Willow’s clients receive informed, tailored advice in an ever-evolving market.
Important Notice
Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other loan secured against it. Think carefully before securing other debts against your home. Some buy-to-let, commercial, and bridging loans (and Lombard loans secured against investments) are not regulated by the Financial Conduct Authority. Equity release may involve a lifetime mortgage or home reversion plan—ask for a personalised illustration to understand the features and risks. The content of this article is for general information only and does not constitute financial or legal advice. Please seek advice tailored to your individual circumstances before making any decisions
Baillie Gifford's strategic shift towards family offices highlights the growing importance of specialist property finance within modern wealth management and private asset planning.
Prime London homes are spending longer on the market as liquidity slows. Discover why HNW homeowners are increasingly considering refinancing, bridging finance and structured lending instead of reducing asking prices.
New government figures reveal rising first-time buyer deposits, increasing reliance on family support and longer mortgage terms. Discover what this means for buyers and parents helping children onto the property ladder.
The Government has expanded cladding funding to eligible lower-rise buildings. Discover what it means for flat owners, buyers, remortgages and mortgage eligibility.
A £3bn wealth management firm is leaving St James's Place. Discover why adviser mobility is creating new opportunities for specialist property finance partnerships.
Hong Kong and Singapore are attracting record international wealth. Discover how this shift is influencing UK property investment, foreign national mortgages and specialist cross-border finance.
Julius Baer's Global Wealth and Lifestyle Report 2026 highlights why currency, international mobility and cross-border wealth are reshaping property finance for expats, foreign nationals and HNW borrowers.
The Bank of England's latest Financial Stability Report explains why collateral, leverage and liquidity matter for Lombard lending, securities-backed finance and high-net-worth borrowers.
