The case in brief
- Client: UK national and US resident
- Property type: Lombard Loan
- Property value: £2 million
- Loan Amount: £400K w/ Lombard loan £1.35m
Utilising a stock portfolio can be the ideal way to fund a mortgage via a Lombard loan. Our client wanted to put as little cash deposit down as possible, preferring to use their extensive stock portfolio to access a Lombard loan and to use this as a deposit for a mortgage on their main residence purchase.
The client
Our client was a trader who took very little income, with most of their wealth tied around their stock portfolio. The client was a US resident but a UK national looking to purchase their main residency in the UK.
The client wanted to leverage their stock portfolio to generate the deposit amount needed to secure a mortgage on their desired property. This would enable them only to require a fairly small cash deposit from themselves on top of the Lombard loan generated from their stock portfolio.
Our solution
We worked with the client to leverage their stock portfolio with a private bank that we hold excellent relationships with in order to acquire the necessary Lombard loan. This enabled us to secure a £1.35 million Lombard loan with our private bank partner, which was offered with maximum flexibility of use and with minimal costs.
We also used the client’s small income to maximise their borrowing with a different preferential lender in order to acquire the mortgage for the property. The lender could offer sub 2% rates to our client and were also willing to accept the Lombard loan as a deposit for the mortgage value.
Ultimately, we were able to achieve a relatively small mortgage to the value of £400,000 for the client. The client was able to use the Lombard loan for the bulk of their deposit and so only needed to fund £250,000 themselves. An ideal outcome which leveraged the client’s stock portfolio to fund a high-value property.
Many high-net-worth individuals’ personal wealth is tied to a stock or property portfolio, which can be leveraged to generate a Lombard loan to help fund a property purchase. Read more about our mortgage services, or speak to a broker today.