Looking for Lombard lending: How Firenze helped an adviser at Brooks Macdonald move faster than a private bank – and keep the assets
A high-net-worth individual held a family investment company with two investment portfolios. One held a diversified mix of equities, bonds and funds. The other held structured products.
Together, they had a combined value of £3.4 million. With a new family home in their sights, they needed to move quickly.
The client had already engaged a private bank to provide a £1.4 million Lombard lending facility. The interest rate on offer was a total of 5.35%, and on paper, the arrangement looked straightforward. But there was a problem: the bank’s onboarding process would take eight weeks. The client had four.
The property purchase deadline was fast approaching. The adviser at Brooks Macdonald faced a genuine dilemma in helping her client access liquidity. The existing solution was too slow.
Additionally, there was a broader concern. If the client moved to a private bank to access portfolio-backed lending, they would also have to move their assets.
Retaining the management of a £3.4 million portfolio was clearly at stake.
How to borrow against your investments
Firenze was there as a strategic lending partner to Brooks Macdonald. From the outset, the Lombard credit solution attracted the adviser. Firenze’s model allowed the investment portfolio to remain under her management throughout. But finding the right outcome for her client remained her top priority.
Two immediate hurdles emerged. Firstly, the private bank offered a competitive price – investment management and other fees subsidised these – to help attract the client’s assets.
Second, {c. 40%} of the client’s assets were held in structured products which lowered the overall LTV.
Firenze worked collaboratively with the adviser to find the best lending solution.
Firenze and Brooks Macdonald structured a lending solution which ensured it could rival that of private banks.
When the client understood that the true cost of the private bank’s offer was notably higher when they considered the broader investment management fees, transaction fees and custody charges, the partnered solution prevailed as being not only a much more efficient solution that met their speed of execution goals but was actually more cost-efficient too.
On the structured products portfolio, Firenze worked closely with internal credit teams to conduct various delta and gamma risk modelling assessments at a portfolio level to get comfortable increasing LTVs and offer the client the full £1.4m they needed.
Comparing the Lombard lending options of private banks vs. Firenze
| Private Bank | Firenze | |
|---|---|---|
| Facility amount | £1.4m | £1.4m |
| Set up time | 8 weeks | 2 weeks |
| Headline rate | SONIA + 1.6% | BoE Base Rate + 1.55% |
| Total rate | ~5.35% | ~5.30% |
| Other fees | Custody + FX Charges | Arrangement Fee + Annual Fee |
| True cost | Higher than headline | ~5.30% |
| Portfolio stays with adviser | ✗ | ✓ |
| Set up time | ✗ | ✓ |
The client’s facility was established, funds were accessed, and the property purchase completed – all within two weeks. Despite taking longer than traditional applications, the process progressed full steam ahead, navigating complex challenges throughout.
Rachael, Brooks Macdonald, commented:
“I was so pleased with the service both me and my client received from Firenze. The Firenze team were seamless and made every effort possible to keep the assets at Brooks while focusing on my client’s needs and ultimately their outcome. The whole process was quick and effortless; my client thought the same.”
The client secured their new home. The adviser retained full management of the £3.4 million portfolio. And the lending was delivered at a rate that the client was happy with.
For wealth managers and advisers, this illustrates the core principle that effective Lombard lending solutions rely on speed, flexibility, and price transparency to both attract and retain assets.
If you have a client who could benefit from access to a Lombard facility or if you just want to find out more, speak to our team here.
