In 2025, the UK lending landscape is defined by high interest rates and stricter bank criteria, making traditional mortgages more challenging for many affluent borrowers. Despite these headwinds, prime property opportunities continue to emerge, and high-net-worth (HNW) individuals are looking for creative ways to finance purchases. One strategy gaining prominence is the Lombard loan – a credit line secured against liquid investments like stocks and bonds. This approach allows wealthy buyers to tap into their investment portfolios for property funding without liquidating assets, which is especially attractive in today’s market.

Willow Private Finance has seen a sharp rise in clients exploring Lombard loans as part of their property financing strategy. With mainstream banks tightening affordability tests, HNW borrowers are leveraging asset-backed lending to bridge funding gaps and even achieve 100% financing structures on prime real estate. For context on how lenders are adapting to HNW borrowers’ needs, see High Net Worth Mortgages in 2025: What Lenders Look For Beyond Income – private banks now evaluate the total wealth picture, not just payslips, opening the door to solutions like Lombard facilities.

In this article, we’ll explore why Lombard loans are especially relevant in 2025’s market and how HNW clients use them to buy UK property. We’ll cover current lending trends, the mechanics of Lombard-backed financing, and key considerations from underwriting to risk management. You’ll also find real-world use cases, an outlook for Lombard lending, and guidance on how Willow Private Finance helps clients structure these complex deals. Let’s dive into the details of using Lombard loans to secure UK property in 2025.

Market Conditions and Lending Trends in 2025

The financial backdrop of 2025 has been a perfect storm for alternative financing solutions. Interest rates remain elevated compared to the ultra-low levels of the 2010s, with the Bank of England’s base rate lingering around its post-2022 highs. Mortgage costs have roughly doubled from their pre-2022 levels, squeezing affordability for many borrowers. At the same time, UK property prices in prime and investment markets have plateaued or seen modest corrections, which savvy investors view as an opportunity to buy at a relative value. The catch? Traditional lenders are cautious – high street banks are stress-testing loans at these higher rates and requiring larger deposits or stronger income proof, slowing down approvals.

For HNW individuals, these conditions present both a challenge and an opening. On one hand, credit conditions are tighter – lenders demand more documentation and are less willing to stretch terms. On the other hand, HNW investors often hold significant wealth in stocks, bonds, funds, or other assets that are not being factored into standard mortgage affordability. Rather than being deterred by stricter rules, many wealthy buyers are turning to asset-based lending to capitalize on property deals. Private banks and boutique lenders in 2025 are actively courting HNW clients by lending against investment portfolios, art collections, and other assets, effectively basing lending on net worth rather than just salarywillowprivatefinance.co.ukwillowprivatefinance.co.uk. This shift allows financing to keep flowing for those with substantial assets, even if their traditional income or UK credit profile is complex.

Another key trend is the demand for speed and flexibility. The market in 2025 is producing scenarios – like competitive prime property sales and time-sensitive transactions – where waiting months for a mortgage approval is not viable. Lombard loans have risen in popularity as a fast liquidity tool: since they’re secured by cash or investments, they can often be arranged more quickly than a mortgage (sometimes in a matter of days or a few weeks, assuming the assets are already held with the lending bank). This speed advantage, coupled with the ability to act as a cash buyer, is invaluable in a climate where desirable properties still attract multiple bids and rapid exchange timelines.

Finally, it’s worth noting that private banking activity is robust. Private banks in 2025 are leveraging their relationship-based model to offer bespoke financing – including Lombard loans – that integrate with clients’ broader wealth management. Many such lenders are offering preferential terms if clients bring assets under management, effectively bundling investment services with lendingwillowprivatefinance.co.uk. The result is that Lombard lending has moved from a niche option to a mainstream strategy for HNW finance in 2025. The rest of this article examines why and how these wealthy buyers are using Lombard loans to fund UK property acquisitions.

Why HNW Clients Use Lombard Loans for Property

High-net-worth clients have unique financial profiles and objectives, which is exactly why Lombard loans have become a go-to solution for property financing. Unlike conventional borrowers, HNW individuals often have substantial wealth tied up in investments, businesses, or global assets rather than a simple monthly paycheck. Here are the top reasons they turn to Lombard lending to purchase property:

• Liquidity Without Liquidation: A Lombard loan unlocks cash without selling investments. Clients can raise capital against stocks, bonds, or funds, avoiding forced sales that could trigger capital gains tax or disrupt long-term investment strategies. This means they retain upside in their portfolio while financing a property.

• Speed and Competitive Edge: Lombard facilities can be arranged quickly and used like cash for a property purchase. This agility lets HNW buyers act fast – for example, putting down a large exchange deposit or completing an all-cash purchase – which is a major advantage for auction buys or prime market deals with tight deadlines. Being able to move in days, not months, can make the difference in securing a sought-after asset.

• High Leverage & 100% Financing: By combining a Lombard loan with a mortgage (or using multiple collateral sources), clients can effectively achieve 100% financing on a property. For instance, an investor might use a Lombard credit line for the 30-40% deposit and take a mortgage for the remainder, meaning none of their own cash is tied up. In some cases, if the portfolio is large enough, they can even finance the entire purchase through a Lombard facility, buying property without a traditional mortgagewillowprivatefinance.co.uk.

• Lower Financing Costs: Interest rates on Lombard loans are typically very competitive – often significantly lower than standard mortgage rates because the loan is secured by highly liquid assets. In fact, Lombard loan pricing is often around one-third the cost of property-backed loanswillowprivatefinance.co.uk. For HNW borrowers facing 6%+ mortgage rates in 2025, a Lombard line at, say, ~3% can dramatically reduce the overall financing cost.

• Flexible Underwriting: Private banks offering Lombard loans focus on the quality of the collateral and the client’s total wealth, rather than rigid income multiples. This flexibility is ideal for entrepreneurs, investors, or international buyers with complex income or tax situations. A strong balance sheet with ample investments can secure property financing even if one’s taxable UK income is modest. Lombard lending thus caters to HNW profiles that just don’t fit the high-street mortgage mouldwillowprivatefinance.co.ukwillowprivatefinance.co.uk.

In short, Lombard loans align perfectly with the needs of wealthy property buyers who value speed, discretion, and efficiency. By leveraging their investment portfolio, HNW individuals can seize property opportunities that might otherwise require awkwardly timed asset sales or prohibitively expensive loans. It’s a strategy that keeps their money working in two places at once – invested in the market and invested in real estate.

Deposit Funding and 100% Financing Structures

One of the most powerful uses of Lombard loans in property finance is to fund deposits and enable 100% financing structures. In a traditional scenario, even wealthy buyers are expected to put down substantial cash deposits (often 25-40% of the purchase price for prime properties) and then take a mortgage for the balance. But what if that cash is tied up in investments, or if deploying it would incur big opportunity costs? This is where Lombard loans come into play.

Using Lombard Loans for Deposits: Many HNW buyers in 2025 use a Lombard credit line to cover the deposit or equity portion of a purchase. For example, suppose a client wants to buy a £5 million London property and needs £1.5 million as a 30% deposit. Instead of liquidating £1.5m from their stock portfolio (and potentially crystallizing capital gains or losing future upside), they can borrow this amount against their portfolio through a Lombard loan. The Lombard facility provides the cash for the deposit, which they then put down with the seller. The remaining £3.5 million could come from a standard mortgage or another loan. This structure effectively bridges the deposit gap – allowing the client to proceed with the purchase while their investment portfolio remains intact.

100% Financing Structures: In some cases, Lombard lending enables financing the entire property purchase with borrowed funds. One approach is the “cash buyer then refinance” strategy: the client draws a Lombard loan for the full purchase price, buys the property outright as a cash buyer, then subsequently takes out a mortgage to refinance and pay down the Lombard line. This can be useful if the property deal must be completed quickly (or quietly) – the buyer doesn’t have to wait for mortgage approval to close the deal. After securing the property, they arrange a long-term mortgage at their leisure and use those proceeds to repay the Lombard loan. Essentially, the Lombard facility acts as a short-term bridge to make them a de facto cash buyerwillowprivatefinance.co.uk.

Another scenario is a blended Lombard + mortgage package from the same private bank. Some private banks will lend, say, 50% of the property value as a mortgage secured on the property and another 50% as a Lombard loan secured against the client’s investment assets. The result is 100% financing of the purchase price, split between two loan structures. This can be attractive if the bank’s maximum mortgage LTV is below what the client needs – the Lombard top-up covers the rest. It’s worth noting that under UK regulations, the mortgage part would be a regulated loan on the property, whereas the Lombard part is typically unregulated (since it’s secured against investments), giving the bank more flexibility on terms.

These high-leverage setups are complex and require careful planning. Lenders will only allow 100% financing for top-tier clients with excellent assets and a clear repayment or refinance strategy. The collateral (both the property and the investment portfolio) must comfortably support the loans. For instance, the bank might only advance 50-60% of the portfolio’s value for the Lombard piece, so the client needs roughly twice the loan amount in liquid securities to begin with. Additionally, private banks often require that they custody the investment assets (or the portion being pledged) – meaning the client’s portfolio might need to be held or transferred to the lending bank’s investment platform as part of the deal.

Nonetheless, when structured prudently, deposit-bridging and 100% financing strategies allow HNW buyers to acquire prime property with minimal cash outlay. They essentially borrow against one asset (their portfolio) to acquire another asset (real estate). This can be a sound strategy if the buyer’s overall wealth is strong, the property is expected to appreciate, and they have an exit plan (such as a future asset sale, bonus, or refinance) to eventually pay down the Lombard loan. It’s the ultimate example of “using OPM” – other people’s money – by leveraging existing wealth to build more wealth.

(For a deeper dive into using investment portfolios to fund property purchases, see Property Finance with Securities Backed Lending: Unlocking Liquidity Without Selling Investments on our site, which explores liquidity strategies for deposits and bridge financing.)

How Private Banks Underwrite These Deals

Arranging a Lombard loan for property purchase isn’t as simple as getting a standard mortgage – private banks employ a bespoke underwriting process that looks at the client’s entire financial picture. Here’s how private banks approach Lombard-backed property deals in 2025:

• Holistic Wealth Assessment: Instead of the one-size-fits-all income multiples used by high-street lenders, private banks evaluate total net worth, liquidity, and assetswillowprivatefinance.co.uk. They’ll examine the size and composition of the client’s investment portfolio, other real estate or business holdings, and overall financial strength. The goal is to understand the client’s ability to meet obligations even under stress, based on their balance sheet and not just salary.

• Quality of Collateral: The bank performs due diligence on the portfolio being pledged. They look at asset types (e.g. equities, bonds, funds, cash), volatility, and diversification. Stable, easily liquidated assets (like government bonds or blue-chip stocks) are preferred and get higher credit limits, whereas concentrated or high-risk holdings might be subject to lower loan-to-value (LTV) allowances. For example, a diversified investment-grade bond portfolio could receive perhaps a 70-80% advance rate, while a single tech stock position might be capped around 50% or less to protect against swings. Each bank has its own haircuts and eligibility criteria, which an experienced broker can help navigate.

• Relationship and AUM: Private banks often consider the broader relationship. Clients who move assets under management (AUM) to the bank or have longstanding banking relationships may get preferential termswillowprivatefinance.co.uk. Essentially, the bank has an incentive to offer a generous Lombard facility if it means they get to manage a large chunk of the client’s wealth. This can translate into slightly better rates or higher flexibility on covenants for the borrower.

• Underwriting the Property (if combined with mortgage): If the structure involves a mortgage on the property in addition to the Lombard loan, the property itself will be underwritten too – but private banks tend to be more flexible here as well. They are comfortable with high-value properties, foreign buyer scenarios, complex ownership structures (trusts, offshore companies), etc., as long as the overall risk is mitigated by the client’s wealth. They may still require a valuation and have criteria for property type/location, but there’s often more latitude on things like high loan amounts or interest-only terms when a strong portfolio is backing the loanwillowprivatefinance.co.ukwillowprivatefinance.co.uk.

• Credit Structure and Covenants: A crucial part of underwriting Lombard loans is setting the covenants – the rules for how the loan is maintained. This includes the initial LTV and the thresholds for margin calls. For instance, a bank might lend up to 60% of the portfolio value initially, with a margin call if the LTV subsequently rises above, say, 70% due to market movements, and a hard stop (asset liquidation) if LTV hits 75%. These triggers vary by lender and are often negotiable at the outset. Banks also decide on rehypothecation rights (whether they can reuse the collateral), whether additional collateral can be quickly added, and how interest is paid (monthly out of pocket, or capitalised into the loan). The terms of these facilities can differ widely, which is why selecting the right lender – and negotiating terms – is keywillowprivatefinance.co.ukwillowprivatefinance.co.uk.

Overall, private bank underwriting for Lombard loans is relationship-driven and case-by-case. A human credit committee will likely review the proposal with an eye to the client’s reputation, history, and plans. They’ll ask questions like: How stable is the client’s asset base? What is their track record with leverage? Is there a clear strategy to reduce the loan (e.g. expected liquidity events or income)? Are there cross-border or compliance considerations (like source of wealth from emerging markets or crypto) that need extra vetting?

It’s also worth mentioning due diligence and compliance: because Lombard loans often involve moving large sums or assets, banks will perform rigorous anti-money-laundering (AML) and source-of-funds checks. If the assets are coming from another institution, expect to provide paperwork proving you own them and that they’re unencumbered. In 2025, private banks are especially cautious about assets like crypto-derived wealth or complex trust funds – they won’t extend credit until they fully understand and document the money’s originswillowprivatefinance.co.ukwillowprivatefinance.co.uk. Working with a specialist broker can help package this information so the underwriting process goes smoothly.

In summary, when a private bank underwrites a Lombard property deal, they are effectively marrying two analyses: the investment portfolio’s strength and the property transaction’s merits. This dual approach is what enables them to lend in situations that would bewilder a mainstream lender. It’s bespoke banking at its finest – but it requires expertise to navigate, on both the bank’s side and the client’s side.

Key Risks and Mitigations

No financing strategy is without risk, and Lombard loans come with their own set of considerations that HNW borrowers must manage. Here are the key risks to be aware of when using a Lombard loan to buy property, along with how they can be mitigated:

1. Market Volatility and Margin Calls: The biggest risk in Lombard lending is that the value of your collateral (investments) can fall. If markets take a dive, a loan that was initially at, say, 50% LTV could suddenly spike to 70% or 80% LTV relative to the reduced portfolio value. Banks protect themselves by issuing margin calls – requiring the borrower to top up collateral or partially repay the loan to bring the LTV back in line. If a borrower can’t meet a margin call, the bank has the right to liquidate assets in the portfolio to reduce the loan balance. This could force selling at the worst possible time (when markets are down). Mitigation: The borrower should maintain a buffer and avoid maxing out the advance rate. A conservative approach might be to use, for example, only 50% of an available credit line so there’s cushion if values dropwillowprivatefinance.co.ukalts.co. Diversifying the collateral portfolio also helps, as a balanced mix of assets is less likely to all fall in tandem. Additionally, some clients set aside separate cash reserves or arrange a secondary line of credit that can be used to meet margin calls if needed – essentially an emergency fund for the Lombard loan.

2. Interest Rate and Refinancing Risk: Lombard loans often have floating interest rates (e.g. a margin over LIBOR or base rate). If interest rates rise further or remain high, the cost of the Lombard loan could increase, impacting the borrower’s carrying cost. Moreover, many Lombard facilities are short-term or demand lines (often 12 months, with potential to roll over). There’s a risk that the lender might not renew the facility on the same terms, especially if the client’s circumstances or the market changes. Mitigation: Where possible, negotiate terms up front – some private banks can fix the rate for a period or commit to a longer term. If the Lombard loan is intended as a bridge, have a clear exit strategy and timeline. For example, if the plan is to refinance into a conventional mortgage, start that process early and ensure you’ll meet the requirements (this might involve working on income documentation or waiting out a foreign residency period, etc.). Essentially, treat the Lombard loan as a temporary solution unless you’re comfortable with its ongoing dynamics.

3. Over-leverage and Asset Dependency: Using borrowed funds to purchase another asset (property) means you’re leveraging one asset against another. This amplifies exposure – if either the property value drops or the investment portfolio drops, your net equity shrinks on two fronts. In a worst case scenario, a severe market downturn could erode your portfolio (jeopardizing the Lombard loan) at the same time a property market slump leaves you with an over-sized mortgage relative to the home’s value. Mitigation: Prudent LTV management is crucial. Many HNW borrowers keep overall leverage moderate – for instance, they might only borrow 50% against the portfolio and 50% mortgage on the property, so even combined it’s effectively a 100% financing, but each side individually isn’t pushed to a 90-100% extreme. Regularly monitoring both the property and portfolio and being ready to deleverage (by selling some investments or making prepayments) if needed is part of responsibly managing the risk. In addition, choose quality assets on both sides: robust investment assets that can weather storms, and high-quality property that is likely to hold value.

4. Liquidity and Covenant Risk: Lombard agreements may have clauses beyond just LTV – for example, covenants about maintaining a minimum account balance, or restrictions on withdrawing any surplus collateral. If all your liquidity is tied up as collateral, you might face a crunch if you need extra cash for other purposes (including property costs like renovations, or unexpected life events). Mitigation: It’s wise not to pledge all your assets. Keep some portion of your wealth unencumbered for flexibility. Work with the bank to understand covenants thoroughly. Sometimes, negotiating a gentler margin-call process (e.g. more time to cure, or a tiered approach) can be done if you have a strong profilewillowprivatefinance.co.ukwillowprivatefinance.co.uk. Also, clarify the bank’s policy on using income or dividends from the portfolio – can they flow to you or must they stay in the account? Some lenders let the portfolio continue to generate cash flow for the client, which can then even help pay interest.

5. Regulatory and Tax Considerations: Lombard loans for UK property must be structured carefully to remain compliant. If the Lombard loan is used directly to purchase a home you will live in, there could be regulatory implications (it might inadvertently fall under mortgage rules). Usually, Lombard loans are technically for “general liquidity” and the bank isn’t taking security on the property, so it stays an unregulated loan. Borrowers and advisers ensure the paperwork aligns with that. Tax-wise, while Lombard loans themselves don’t incur tax, their interplay with assets can – for instance, if you need to sell some investments to rebalance, that could trigger gains. Also, interest on Lombard loans used for property might not be tax-deductible (unlike some mortgage interest for investment properties, if structured properly). Mitigation: Professional advice is key. Willow Private Finance often coordinates with tax advisers to ensure that the financing structure is efficient and that any cross-border aspects are handled (e.g. if the assets are offshore but the property is UK, or the borrower is non-dom status, etc.). Always discuss the plan with your accountants and lawyers, so there are no surprises with HMRC or the FCA.

In essence, risk management for Lombard-backed property deals means keeping an eye on both markets – your investments and the real estate – and having contingency plans. Seasoned HNW investors often view Lombard loans as a tool to be used judiciously: extremely powerful and cost-effective in the right moment, but something to wind down or exit if the risk equation deteriorates. When arranged with the right safeguards, Lombard financing can be a safe bridge to opportunity rather than a perilous tightropewillowprivatefinance.co.ukwillowprivatefinance.co.uk.

(For further reading on this topic, check out Risks in Securities Backed Lending: Market Volatility, Margin Calls, and How to Protect Yourself, which delves into strategies for safeguarding your wealth when using portfolio leverage.)

Strategic Use Case Examples

To illustrate how Lombard loans are employed in real-life scenarios, here are a few generalized examples. (All examples are hypothetical and simplified – no client data is disclosed.)

Example 1: “Cash Buyer” for a Prime London Purchase.

An international entrepreneur is eyeing a £8 million penthouse in London’s Mayfair. Competition is stiff, and the seller favors a quick, cash purchase. The buyer has £20 million in a global stock portfolio but minimal cash on hand. Through Willow’s arrangement, he obtains a £8 million Lombard loan secured against a portion of his portfolio (at roughly 60% LTV on the pledged assets). This turns him into an effective cash buyer – he completes the purchase in a few weeks, impressing the seller with the speed and certainty of funds. Over the next six months, he refinances half the property value with a £4 million mortgage from a private bank (now that there’s time for proper underwriting and a valuation) and uses those proceeds to pay down half of the Lombard loan. The rest of the Lombard facility is left outstanding at a low interest rate, supported by the remaining investments. In one year, after some of his business investments mature, he plans to fully clear the Lombard loan.

Outcome: He acquired the property quickly without liquidating stocks during an inopportune market, and then gradually shifted to long-term financing on his own schedule.

Example 2: Deposit Bridging for a Country Estate.

A high-net-worth family based overseas wants to buy a £5 million country estate in the UK as a second home. They have significant wealth, but much of it is tied up in a family investment company and illiquid assets. The private bank is willing to lend 60% of the property value via a mortgage (£3 million), but that still requires a £2 million deposit. Rather than wiring cash from dismantling investments (which would take time and incur taxes), the family arranges a Lombard loan of £2 million against their £5 million bond portfolio held with the same bank. This Lombard loan provides the deposit at the exchange of contracts. With the deposit down and the mortgage offer secured, the purchase proceeds. Post-completion, the family decides to keep the Lombard loan open for a few months until a scheduled dividend from their business arrives, which they will use to pay off the Lombard facility.

Outcome: The family managed to buy the home with essentially 100% financing at the outset, using a combination of a mortgage and a Lombard loan, and avoided rushing any asset sales. They were able to repay the portfolio line once other funds became available, incurring interest only for the short bridging period.

Example 3: Portfolio Leverage instead of Mortgage.

A UK-based investor owns several rental properties outright and also holds a £10 million stock portfolio. She’s considering buying another investment property for £3 million but notes that buy-to-let mortgage rates are quite high (and come with lender fees, stress tests on rental income, etc.). She chooses a different path: she takes a Lombard loan of £3 million against her portfolio at an attractive rate (for instance, base rate + 2%). She uses this loan to purchase the new property outright. Because she bought in cash, she secured a slight discount on the price and had a much faster closing. Now, she has a choice: she can keep the Lombard loan as her financing (since its interest cost is actually lower than what a BTL mortgage would have been), effectively keeping the property unencumbered by any mortgage, or she could later decide to take a mortgage and invest the freed-up cash back into her portfolio. She likes the flexibility of this approach.

Outcome: By leveraging her liquid assets, she avoided the hassle and cost of a mortgage and was able to swiftly add another property to her portfolio. Her overall asset allocation shifted slightly (more real estate exposure, offset by a loan against securities), but she’s comfortable managing the balance and enjoys full ownership of the property with no mortgage restrictions.

Example 4: International Buyer Navigating Currency and Residency Hurdles.

A client from Asia is relocating to the UK and wants to buy a £2 million home in advance of moving. However, as a non-resident with no UK credit history or income (yet), getting an immediate UK mortgage proves difficult. He does, however, have substantial assets in a managed account back home. Through Willow’s network, a private bank agrees to extend a Lombard loan of £2 million against a portion of his international investment portfolio. The loan is denominated in GBP and is used to purchase the UK property for cash. This solves multiple problems: no UK income needed, no currency conversion delay (the bank effectively gives him GBP against his non-GBP assets), and no waiting for visa status to be resolved for a mortgage. Once he moves to the UK and has employment or a clearer status, the plan is to apply for a standard remortgage in a year or two. At that point, he will use the mortgage funds to repay the Lombard loan (or alternatively, move some funds from abroad to do so if more convenient).

Outcome: The Lombard facility acted as a bridge to homeownership in the UK when traditional financing wasn’t available. The client managed exchange rate timing and residency issues by leveraging his existing wealth, and he obtained his home sooner rather than later, with a clear exit strategy to transition to permanent financing.

These examples underscore a common theme: Lombard loans provide flexibility. They can be tailored to unique situations where conventional loans fall short. Whether it’s acting quickly, sidestepping bureaucratic hurdles, or optimizing cost, Lombard lending – when used judiciously – gives HNW borrowers an edge. It’s important to craft these deals carefully (usually with professional advice) to ensure there’s a solid game plan for repayment and risk management. But as seen above, the strategic use of Lombard loans can solve problems that otherwise might derail a property ambition.

Outlook for Lombard-Backed Property Lending

Looking ahead, the role of Lombard loans in UK property transactions for HNW individuals is poised to remain significant and possibly expand. Several factors shape the 2025 and beyond outlook for this niche of the finance market:

• Evolving Market Conditions: If interest rates begin to stabilize or decrease in late 2025 and 2026 (as some forecasts suggest), one might assume the appeal of Lombard loans would lessen because mortgages would get cheaper. However, even in a lower-rate environment, the unique advantages of Lombard lending – speed, flexibility, and asset-based underwriting – will continue to fill a gap that traditional mortgages can’t. In fact, if property markets pick up steam again with renewed buyer interest, the ability to act quickly will be at a premium. Lombard loans could become an even more standard tool in competitive bidding situations, not just an emergency measure for when mortgages are expensive.

• Increased Adoption and Awareness: Historically, Lombard loans were somewhat under-the-radar, known mainly to seasoned private banking clients. But in 2025 we’ve seen a broadening awareness. Financial advisers, wealth managers, and brokers are educating clients about securities-backed lending as part of a holistic strategy. As success stories spread (e.g., an investor bragging how they snapped up a property using portfolio credit), more HNWs are asking about it. We anticipate wider adoption among property investors, developers, and even family offices who see Lombard facilities as a routine part of their financial toolkit. Private banks are responding by marketing these loans more openly in their product suite.

• Product Innovation and Competition: With demand rising, lenders are innovating. We expect to see more competitive offers and customization. Already, it’s not just private banks – some specialist non-bank lenders and fintech platforms are exploring margin loans or portfolio credit lines for wealthy clients. As competition heats up, clients may benefit from better terms: perhaps higher LTVs for certain blue-chip portfolios, longer tenors, or integration with other products (like combining Lombard loan and currency hedging for overseas buyers). Additionally, lending against a broader range of collateral could become more common; today it’s mostly liquid securities, but tomorrow we might see more acceptance of things like private equity holdings, or Lombard-style loans against alternative assets (art, classic cars, etc.) wrapped into the structure. Essentially, asset-based lending is becoming more creative.

• Regulatory Landscape: Regulators like the FCA keep an eye on any fast-growing lending segment, but Lombard lending, being collateralised and typically unregulated credit, isn’t drawing negative attention. If anything, from a prudential standpoint these loans are seen as safer (fully secured by liquid assets). However, regulators will be keen that banks manage risks properly – for example, ensuring clients truly understand margin call risks. We might see guidelines or best practices codified within private banks for how they communicate these risks (many already do, of course). The focus on responsible lending will remain, but since HNW clients are sophisticated, there’s an expectation they deploy Lombard credit wisely. Overall, no major regulatory hurdles are on the horizon, meaning the environment for growth is clear.

• Integration with Wealth Planning: The future will likely see Lombard loans discussed in the same breath as estate planning, tax strategy, and investment management. Rather than an isolated loan, it becomes part of a broader plan: e.g., using a Lombard loan to bridge generational wealth transfers (so heirs can pay inheritance tax or equalize estates without selling assets), or using it to provide liquidity for philanthropic endeavors while endowments remain invested. This integration means more professionals (tax advisers, family offices) will be collaborating on Lombard-backed strategies. It underscores that these loans are not merely transactional but strategic.

In summary, Lombard lending’s trajectory is upward in the HNW property finance space. It’s meeting a need that isn’t going away – the need for liquidity, agility, and tailored solutions in an ever-more dynamic market. As with any leverage, there will be those who overextend and cautionary tales may emerge (especially if a severe market correction hits). But used prudently, Lombard loans are likely to become as common as bridging loans or second charge loans in conversations about complex property financing. The key difference is that they reside at the intersection of one’s investment world and property world, which is exactly where many HNW individuals operate.

For anyone considering this path, the takeaway is: be informed and get advice. With expert guidance (and a healthy respect for risk management), Lombard loans will continue to unlock property opportunities in 2025 and beyond, transforming investment portfolios into the keys for new homes and investments.

How Willow Private Finance Can Help

Navigating the intricacies of Lombard loans and high-value property finance requires expertise – and this is where Willow Private Finance excels. We have extensive experience structuring Lombard-backed property deals for HNW and ultra-HNW clients, both UK-based and international. Our role is to act as your strategic advisor and facilitator, ensuring that all the moving parts align for a successful outcome.

At Willow, we start by understanding your full financial picture and objectives. Many of our clients come to us with complex profiles – international assets, business income, trusts or holding companies, you name it. We analyse how a Lombard facility could fit into your scenario (or whether an alternative route makes more sense). Because we work with a broad network of private banks and specialist lenders, we know which institutions are most receptive to particular collateral types or unique borrower situations. For example, some banks might offer better terms if you have U.S. dollar investments, others might be more comfortable with tech-stock heavy portfolios, and so on. We leverage these insights to match you with the right lender and negotiate terms that protect your interests.

Importantly, Willow Private Finance coordinates the end-to-end process. Using a Lombard loan for property isn’t just about the loan itself – it means juggling timing with the property transaction. We liaise with all parties: private bankers, mortgage underwriters (if there’s a hybrid structure), solicitors handling the property conveyancing, and even your tax advisors or trustees if needed. Our team has orchestrated scenarios where, for instance, an international client’s assets were moved across borders into a UK custody account, a Lombard line was drawn down for a deposit, and simultaneously a mortgage offer was arranged – all within a tight deadline for an auction purchase. This kind of complex deal structuring is our bread and butter.

We also help mitigate risks for our clients. When arranging Lombard facilities, we’ll advise on prudent borrowing levels and help set conservative terms so you’re comfortable. If needed, we can build in safeguards like an automatic drawdown of additional funds (or a standby facility) to cover potential margin calls – whatever gives peace of mind. Because we also specialise in related areas like bridging finance, protection insurance, and international finance, we can augment the Lombard strategy with other solutions. For example, if part of the plan is to refinance with a mortgage later, our mortgage specialists will already be working on that parallel path. Or if currency movements are a concern for an overseas client, we might integrate a forex strategy or an FX-linked credit line.

In short, Willow Private Finance acts as a single point of contact to orchestrate a deal that might otherwise require you to separately handle a half-dozen institutions and advisors. We’ve helped clients from the Middle East, Asia, North America and across Europe utilise Lombard loans to secure UK properties – whether it’s a £2m flat or a £20m mansion – and each time, the feedback is that having a knowledgeable partner was invaluable. We pride ourselves on speaking the language of both the wealth management world and the property lending world, ensuring nothing is lost in translation when combining them.

If you’re considering using a Lombard loan or any form of portfolio leverage for a property purchase, our message is simple: don’t go it alone. Willow’s specialists can help you evaluate the options objectively, set up the optimal structure, and execute the plan with minimal hassle. The result is a tailored financing solution that lets you capitalize on today’s market opportunities while safeguarding your long-term financial health.

Frequently Asked Questions

Can I get 100% property financing with a Lombard loan?

It’s possible to fully finance a property by combining a Lombard loan with a mortgage or using a large enough investment portfolio, but it’s generally done via a blended structure. For example, you might borrow 30-50% of the purchase price through a Lombard loan (using your portfolio as collateral) to cover the deposit, and the remaining 50-70% comes as a mortgage on the property. Some private banks offer a one-stop solution, lending say 50% against the property and 50% against your investments, totaling 100%. However, 100% financing is typically reserved for clients with substantial assets and strong profiles – the bank needs to be very comfortable with both the collateral and your repayment plan. Always have a clear strategy for how you’ll eventually pay down the loans (through asset sales, refinancing, etc.), since carrying high leverage long-term can be risky.

What loan-to-value (LTV) can I get on a Lombard loan?

The LTV on a Lombard loan refers to the percentage of your investment portfolio’s value that a bank will lend. Typical LTVs are around 50-60% for a diversified portfolio of stocks and bonds. This means if you have £10 million in eligible investments, you might obtain roughly £5 million in credit. The exact LTV depends on the composition of your assets: high-quality bonds or cash might get slightly higher advances (even 70-80%), whereas volatile equities or concentrated positions might be capped at lower ratios (30-50%). Banks impose these limits to leave a buffer so that if your asset values drop, they’re still covered. It’s important to remember that you don’t have to utilise the full LTV available – often borrowing less (e.g. 30% of your portfolio value) provides more safety against market swings.

How quickly can a Lombard loan be arranged for a property purchase?

Lombard loans can often be arranged faster than traditional mortgages. If you already have a private banking relationship and your assets are in place, a Lombard credit line might be set up in a matter of days to a couple of weeks. The bank’s main tasks are to evaluate the portfolio and complete internal credit approval – there’s usually no property valuation or lengthy legal process tied to the loan itself (since the collateral is your investments). In practice, new clients to a bank might expect a few weeks for onboarding, compliance checks, and asset transfer if needed. Still, this is typically quicker and more straightforward than a mortgage. We’ve seen clients use Lombard facilities to meet tight exchange deadlines or auction completion dates that would have been impossible with a standard loan. It’s wise to engage early and work with an adviser to fast-track the process; having all your investment statements and documents ready for the bank will speed things up.

What are the risks of using a Lombard loan for property?

The primary risk is that a Lombard loan is secured against your investment portfolio, so if your portfolio’s value falls significantly, you could face a margin call. That means the bank would ask you to add more collateral or repay part of the loan. If you can’t, the bank may sell off some of your investments to reduce their exposure, potentially locking in losses for you. Additionally, Lombard loans are often callable or short-term facilities – the bank might not renew it if your financial situation changes or if market conditions worsen. There’s also interest rate risk (many Lombard loans have variable rates) and the general risk of over-leveraging – if you pair a Lombard loan with a mortgage, you’re increasing your overall debt. Mitigating these risks involves borrowing prudently (well below the maximum limits), maintaining a diverse and relatively stable portfolio, and having an exit strategy or reserve funds. Working with a knowledgeable broker or adviser can help structure the deal with safeguards, such as setting conservative loan covenants or keeping an unused credit line as a backup for margin callswillowprivatefinance.co.uk.

Who is eligible for a Lombard loan and do I need to be an existing private bank client?

Eligibility for a Lombard loan generally requires you to have sufficient liquid assets (usually at least six figures, often £1 million+ for premier private banks, though some will do smaller facilities around £100k–£500k range). You don’t necessarily need to be an existing private bank client – many banks will onboard new clients who bring substantial assets for this purpose – but you will need to meet their Know-Your-Customer and regulatory checks. Essentially, you should have a clean source of wealth, and the assets you pledge must be acceptable to the bank (they may not take very obscure or illiquid holdings). Most Lombard loans are provided by private banks or wealth management firms, so eligibility often comes hand-in-hand with opening an investment account at that institution. One thing to note: if you already have a relationship with a private bank, the process can be smoother since they know you and already custody your assets. If you don’t, engaging a broker like Willow Private Finance can help identify a suitable bank and navigate the account opening. In terms of profile, Lombard lending is common among HNW investors, entrepreneurs, company directors, and international buyers – there isn’t a specific profession, but you do need the assets and a credible plan for using the loan. Lenders will also expect that you have solid investment knowledge or advisors, as these loans are typically offered to sophisticated individuals.

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