A wide range of borrowers can use their investment accounts, including tax-efficient wrappers, as security for a facility, subject to eligibility.
If your client’s portfolio falls in value, they may receive a Margin Call requiring them to repay part of the loan or add more assets. This could force your client to sell investments at an undesirable time.
The loan rate tracks the Bank of England Base Rate. If rates rise quickly, your client’s interest costs may increase significantly beyond what you expected or planned for.
If your client misses repayments, Firenze may sell some or all of your client’s pledged investments to recover the loan.
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.
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