Firenze for Borrowers

Understanding Lombard lending

If you are considering a loan secured against your investment portfolio, it is important to understand the structure, eligibility criteria, risks, and ongoing responsibilities associated with this form of lending.

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What is Lombard lending?

Lombard lending allows individuals to borrow money by using their existing cash or investment portfolio as collateral. Rather than selling investments, which may have tax implications or interrupt long-term investment plans, individuals may access liquidity without disposing of assets.

How does a Lombard loan work?

A Lombard loan works by requiring the borrower to pledge liquid assets, such as equities, bonds, funds or commodities.
With a Lombard loan, you can borrow against your assets, typically up to a certain percentage of their market value. The specific percentage is determined based on various criteria, and is known as the Loan-To-Value ratio. Firenze offers up to 50% Loan-To-Value.
Lombard lending requires ongoing monitoring, as naturally the value of the collateral will change daily in line with markets.
If the portfolio value falls, this may result in what is known as a margin call, which is a demand to top up the value of the portfolio if it falls below a required amount, essentially, the amount sufficient to cover the shortfall.
In the instance of significant market downturns, Firenze has the right to sell the investment portfolio.

Who can apply, and what investments or tax wrappers can be used as security?

A wide range of borrowers can use investment accounts, including tax-efficient wrappers, as security for a facility, subject to eligibility.

Eligible borrowers, wrappers and assets:

What we don't consider:

Why choose Lombard lending?

Fast & Simple Process – Quick access to liquidity without lengthy credit approvals.
Flexible Use of Funds – Use the loan for investments, real estate purchases, business opportunities, or lifestyle needs.
Preserve Your Portfolio – Maintain your long-term investment strategy while unlocking value.
No Asset Transfers Needed – Keep your investments in place while borrowing against them.

Risk considerations

Market Risk

If your portfolio falls in value, you may receive a Margin Call requiring you to repay part of the loan or add more assets. This could force you to sell investments at an undesirable time.

Interest Rate Risk

Your loan rate tracks the Bank of England Base Rate. If rates rise quickly, your interest costs may increase significantly beyond what you expected or planned for.

Missed Payments

If you miss repayments, Firenze may sell some or all of your pledged investments to recover the loan.

Tax Risk

Using assets held in tax wrappers (like ISAs or offshore bonds) may carry tax consequences. A forced sale due to non-payment or a Margin Call could, for example, invalidate the entire ISA’s tax status. Always speak to your advisor.

How the application process works 

Apply – Complete a simple application process with digital verification via the Firenze mobile app.
Get Approved – Loans approved based on your portfolio’s value, diversification and individual circumstances.
Draw Funds – Access liquidity quickly when needed, without disrupting investments.
Repay at Your Pace – Pay interest only on the amount drawn, with flexible repayment options.