Lombard loans on the roadmap?

Dear IE team,

I was wondering whether you have Lombard loans on your roadmap?

Kind regards,

Daniel Gartmann

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@daniel.gartmann - Have you walked passed our offices and seen something on a whiteboard? :wink:

This is something we’ve been discussing internally. It’s not set in stone on our roadmap at the moment but we are looking at a couple of different ideas.

Some of the questions I have:-

  • What would you use the loans for?
  • What Interest Rates would you expect?
  • Should we partner with a Bank to do this? (Who?)
  • What % of your portfolio would you expect to be able to borrow?

We may come out with a full product survey to customers on this topic in the coming months…but if you’ve got any thoughts we’re all ears :ear:

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Hi @tom.winterton, thanks for your reply!

I haven’t been spying on IE :sweat_smile: it’s just that I would love to see Lombard loans available to retail investors in the UK and not only to high-net-worth individuals via private banks.

The main benefit is that investors could lend money without taking money out of an ISA or incurring capital gain/corporate tax in a general/business account.

What would you use the loans for?
Property

What Interest Rates would you expect?
Something similar to mortgages or margins rates, see IBKR’s interest calculator: Margin Rates and Financing | Interactive Brokers LLC

“typical Lombard loan interest rates to sit between 2% and 5%” taken from:

2-3% see: Lombard loans | Base rates | Lombard Odier

Should we partner with a Bank to do this?
Maybe partnering with a private bank with experience with this kind of loan initially and, in the long run, take it in-house to cut any middleman fees.

What % of your portfolio would you expect to be able to borrow?
I would expect a range between 50% to 80%, but it depends on the liquidity and risk profile of the ETFs we will be using as collateral.

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