FAST and FLEXIBLE LENDING AGaInst your INVESTMENTs

Did you know you can borrow against your investments? It could help you fund a big purchase or invest in a business. Put simply, it means your assets are working harder for you.

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fast and flexible lending against your INVESTMENTs

Did you know you can borrow against your investments? It could help you fund a big purchase or invest in a business. Put simply, it means your assets are working harder for you.

 

Book an appointment

life's full of surprises

Investment Backed Lending (IBL) is an option worth considering if you have money invested for the long term and don’t want to sell out of the markets in the short-term. It can provide fast access to funds through an overdraft using your investments as security.

You still keep the stocks, bonds and other assets you own in your investment portfolio, and continue to receive the potential returns they might generate. But they act as collateral against the overdraft.

Like any form of borrowing, it’s important to be aware of the risks versus the returns, and of what else is available. Investment Backed Lending is just one option, after all, and our private bankers and wealth managers are on hand to help you explore all possibilities.

  • How does it work and what are the rates?

    It works in a similar way to an overdraft. The larger your portfolio, the lower your interest.

    -   From £500,000 up to £5 million – 1.5% above the Coutts base rate

    -    From £5 million up to £10 million – 1.25% above the Coutts base rate

    -    More than £10 million – 0.99% above the Coutts base rate

    Your stocks, bonds and other assets are untouched. They’re simply used as collateral and you’ll continue to receive the potential returns they generate. For lending secured on offshore bonds, different rates apply. Please contact your Private Banker for more information.

  • Important information

    This product may not be suitable for you if: 

    • you are using it for residential property renovation or improvements.
    • you require any advice 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.

    You need to have over £500,000 in investments to be considered for Investment Backed Lending at Coutts. 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 we do not provide tax advice.

    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.
    • 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.

     

    LENDING AGAINST INVESTMENTS MUST NOT BE USED FOR RESIDENTIAL PROPERTY RENOVATION OR IMPROVEMENTS. SECURITY IS REQUIRED. OVER 18s ONLY.

the benefits

  • You only pay interest on the amount of the agreed overdraft you use
  • There are no costs involved in setting it up
  • It is available in a number of currencies
  • We require no external valuation of your investments if you invest with Coutts

 

 

the caveats

This product may not be suitable if:

  • you are using it for residential property renovation or improvements
  • you rely on the income and capital from your investments and cash to maintain your standard of living

You need to have at least £500,000 in investments looked after by Coutts to be considered for Investment Backed Lending with us.

the benefits

  • You only pay interest on the amount of the agreed overdraft you use
  • There are no costs involved in setting it up
  • It is available in a number of currencies
  • We require no external valuation of your investments if you invest with Coutts

the caveats

This product may not be suitable if:

  • you are using it for residential property renovation or improvements
  • you rely on the income and capital from your investments and cash to maintain your standard of living

You need to have at least £500,000 in investments looked after by Coutts to be considered for Investment Backed Lending with us.

An Example

  • BUYING A CLASSIC CAR

    Investment Backed Lending can be a flexible and efficient way to fund a short-term gap between selling one thing and buying another.

    One of our clients with a passion for classic cars was looking to sell one vehicle so he could buy a model he’d wanted for years.

    The nature of the car market means it can take time to sell, but opportunities to buy can come up at short notice. Our client needed money quickly to cover the cost if he was to fulfil his ambition.

    He had enough invested with Coutts for the purchase, so could have sold his investments, but he didn’t want to do that only to reinvest after selling his other car. As well as time out of the market and administrative costs, there were potential tax implications from realising gains when his allowances for the current year had already been used.

    This made Investment Backed Lending a good option for this particular client. It gave him a quick, low-cost facility he could draw on right away. He bought the car he really wanted while keeping his investments intact.

     

    Find out more about investing with Coutts

Already a client?

 

For more information about our services, please speak to your adviser or call 020 7957 2424.

Become a client

 

Please get in touch online or call 020 7753 1365 to find out more about our services.

 

Calls may be recorded.

Find out more about investment-backed lending. Talk to us now.

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