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Flexible borrowing for life’s surprises

If you’re an investor in need of some extra funds – either for something special or your day-to-day needs – Investment Backed Lending could be worth considering

1 min read

Picture the scene – you’ve invested for the long term but need some funds in the short term. Perhaps you’re looking to buy a property? Maybe you want to snap up a classic car that’s come on the market? Or it could be that you just need some extra capital.

Life’s unpredictable. And if you do find yourself wanting relatively fast access to funds, one option you might consider is borrowing against your investments – or Investment Backed Lending (IBL) as we call it.

How it works

Your investments act as security against an overdraft on which you only pay interest on what you use. There are no upfront costs and you can set it up any time so it’s ready when you need it.

There are also a number of currencies available and we require no external valuation of your investments if you invest with us here at Coutts.

You can find out more in our IBL brochure. It is, though, just one option among many, and it’s worth finding out about everything available to you before making a decision about what’s most suitable. Our experts are on hand to help guide you through all possibilities.

Please note: Coutts doesn’t advise on the lending or give tax advice, and we’ve listed the qualifying criteria at the bottom of this article.

“Raising the money through Investment Backed Lending meant my client was ready to complete the purchase quickly while leaving their investments in place.”
Coutts Private Banker Teresa Norton

Client case study: The speedy house buyer

Coutts Private Banker Teresa Norton explains why one of her clients decided to use IBL from the range of borrowing options available when they needed to move quickly on a property sale.

“My client found a fantastic investment property in Chelsea and wanted to move quickly,” she says. “They considered a buy-to-let mortgage but because of the competitive marketplace, felt it better to raise all the funds for the property in advance so they could complete the purchase quickly.

“They had a substantial investment portfolio, but selling would have led to a significant tax event. Raising the money through Investment Backed Lending meant my client was ready to complete the purchase quickly while leaving their investments in place.”


Next steps

If you have over £1 million in investments you could be able to borrow against them with Coutts.

Like any form of borrowing, it’s important that you are aware of the risks versus the returns, as well as the other options available.

Please contact your private banker to talk through your borrowing needs.



This product may not be suitable for you if:

  • you are using it to purchase your primary personal residence, a second or holiday home for personal use, or related expenses, such as renovation/improvement on such properties or related lease/service charges.
  • you require any advice to you on the merits or suitability of the product for you.
  • you rely on the income and capital from your investments and cash to maintain your standard of living.

We strongly recommend you seek your own independent advice if you are unsure whether this product is suitable for you. We also recommend that you seek tax advice as this is not something we provide.

Before you borrow against investments, you should understand these risks:

  • If the security you provide is insufficient to support the amount you have borrowed, you may be required to rectify the shortfall at short notice – this is referred to as a margin call
  • If you borrow to purchase investments and these investments are themselves provided as security for your liabilities, your losses or gains could be magnified
  • If your borrowing is in a different currency to the limit, fluctuating exchange rates could result in the limit being exceeded and you may be required to rectify the shortfall at short notice – this is referred to as a margin call.
  • Lending secured over investments can have an adverse impact on the value of your investments. This risk is amplified if the funds are used for leverage purposes. Investment values can fall as well as rise, your capital is at risk.

The final decision whether to proceed must be your own and in making your decision you should carefully consider the comparison between borrowing costs and potential investment gains/losses.


Your home or property may be repossessed if you do not keep up repayments on your mortgage.

Over 18s only. Terms and conditions apply. You may not be eligible for all Coutts mortgage solutions. Security may be required.

We’re committed to supporting clients who may be affected by coronavirus and have robust plans in place to minimise any disruption to our service.


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