Lombard lending, once regarded as a niche borrowing solution reserved almost exclusively for ultra-high-net-worth individuals, is rapidly becoming part of the wider property finance conversation. A recent Financial Times report highlights how buyers with substantial, but not necessarily extraordinary, investment portfolios are increasingly using securities-backed lending to finance property purchases without liquidating long-term investments.

The shift reflects changing attitudes towards wealth management as investors look to preserve portfolio growth, avoid unnecessary capital gains tax events and maintain liquidity while continuing to pursue residential, investment and international property acquisitions.

The growing awareness of Lombard lending represents a significant development. While private banks have offered these facilities for decades, demand is broadening well beyond the traditional private banking elite.

Asset-Rich No Longer Means Cash-Poor

Many successful investors find themselves in a familiar position. Their wealth may sit within diversified portfolios of equities, bonds, investment funds or other marketable securities, yet releasing cash often means selling investments that continue to generate long-term returns.

Rather than disposing of assets, Lombard lending allows borrowers to use eligible investments as collateral to obtain a loan while remaining invested. The underlying portfolio continues to participate in market performance, dividends and other investment benefits, subject to the terms of the lending facility.

Historically, these facilities were largely associated with buyers acquiring super-prime London property worth tens of millions of pounds. Today, however, advisers report increasing demand from clients seeking facilities between £1 million and £3 million, many of whom would not traditionally have considered themselves private banking clients.

This evolution reflects a wider change in wealth management, where sophisticated borrowing strategies are becoming accessible to a broader segment of affluent investors.

Property Buyers Want Speed And Flexibility

One of the greatest attractions of Lombard lending is speed.

Unlike conventional mortgages, which often require lengthy affordability assessments, property valuations and underwriting, a securities-backed facility can frequently be arranged much faster because the lending decision centres on the quality, liquidity and diversification of the investment portfolio securing the loan. Exact timescales vary by lender and client circumstances, but established private banking relationships can significantly accelerate the process.

This speed provides several advantages.

Some borrowers use Lombard lending as temporary finance while waiting for an existing property sale to complete. Others use it to secure an off-market purchase before competitors become aware of the opportunity. Increasingly, buyers are also combining Lombard lending with traditional residential mortgages to increase purchasing flexibility while avoiding unnecessary investment sales.

In competitive markets, being able to demonstrate immediate access to funds can materially strengthen a buyer's negotiating position.

A Growing Role Alongside Traditional Mortgages

Rather than replacing conventional mortgage finance, Lombard lending is increasingly being used alongside it.

For example, an investor with a substantial portfolio may use a securities-backed facility to fund a deposit or complete quickly, before refinancing part of the purchase with a traditional mortgage once the transaction is complete.

Others may choose to retain higher levels of investment exposure instead of committing large amounts of cash to a property purchase.

This integrated approach allows borrowers to manage liquidity across their entire balance sheet rather than viewing individual assets in isolation.

For business owners, entrepreneurs and internationally mobile clients, this can be particularly valuable where investment portfolios continue generating returns while providing access to capital for property opportunities.

Private Banks Continue To Expand Their Offering

Many of the UK's leading private banks and wealth managers already provide Lombard lending facilities to suitable clients.

Institutions including Coutts, HSBC Private Bank, Goldman Sachs, Brown Shipley, Evelyn Partners, Quilter Cheviot and others continue to develop securities-backed lending as part of wider wealth management strategies.

Demand has increased despite higher interest rates, suggesting that borrowers increasingly value flexibility and liquidity over simply minimising borrowing costs.

For many clients, maintaining investment exposure while unlocking capital represents a more efficient long-term strategy than liquidating assets.

Understanding The Risks

Despite its growing popularity, Lombard lending is not appropriate for every borrower.

Unlike residential mortgages secured against property values, Lombard loans are secured against assets whose values fluctuate daily.

Should investment values fall significantly, lenders may require additional security or partial repayment to restore agreed loan-to-value ratios. In certain circumstances, pledged investments may need to be sold if sufficient additional collateral cannot be provided.

Borrowers also need to consider wider issues including portfolio concentration, eligible asset classes, currency exposure for overseas property purchases and the total cost of borrowing.

Industry experts also caution against focusing solely on headline interest rates. Some private banking arrangements include discretionary portfolio management or custody charges which can materially affect the overall cost of borrowing.

For these reasons, securities-backed lending should always be considered within the context of a client's wider financial position, investment objectives and risk tolerance.



Why Specialist Advice Matters

Structuring Lombard lending requires considerably more than identifying a lender willing to advance funds.

Different institutions apply varying lending criteria depending on the composition, diversification and jurisdiction of investment portfolios. Loan-to-value ratios, eligible assets, pricing structures and ongoing monitoring requirements differ significantly between providers.

Where property finance also forms part of the transaction, careful coordination between private banks, mortgage lenders, wealth managers, tax advisers and legal professionals is often essential.

An experienced specialist can assess the wider funding strategy, helping clients determine whether Lombard lending should complement, rather than replace, more traditional borrowing solutions.

The Future Of Property Finance

The Financial Times article reflects a broader shift taking place across high-value lending.

Property finance is becoming increasingly integrated with wider wealth management. Rather than viewing investments and property as separate financial decisions, more borrowers are leveraging both to maximise flexibility and preserve long-term wealth.

As awareness grows, Lombard lending is likely to become an increasingly familiar solution for successful entrepreneurs, professionals, investors, expatriates and internationally mobile clients whose wealth is concentrated in investment portfolios rather than cash.

For borrowers who understand both the opportunities and the risks, securities-backed lending has the potential to unlock property opportunities that might otherwise remain out of reach—all without requiring the sale of carefully built investment assets.