P1 Platform and Firenze have partnered to offer Lombard loans backed by clients’ investment accounts or Isas.
The firms said the offering provides access to liquidity without having to sell investments and generate a capital gains tax (CGT) liability.
Accessible from within the P1 App, clients will be able to apply for a loan digitally, secured against one of their investment accounts. The loan details will be viewable within the app.
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If a client has a loan in place, they must request withdrawals from Firenze to ensure they do not breach the loan-to-value (LTV) limits. Loans will be available from £25,000 to £5m+, with a maximum starting LTV of 50%.
Lombard loans are a product traditionally reserved for private banking customers with a high net worth and are not widely available.
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James Priday, CEO of P1 Investment Services, said: “This integration is a significant step in making the P1 Platform the hub for accessing integrated financial and investment services for advisers and their clients. Over the next year, we’ll be revolutionising what people believe an investment platform is, skipping forward to platform 4.0, 5.0 and beyond.”
David Newman, CEO of Firenze, added: “Lombard lending is the last of the private banking services that can be opened up to advisers and their clients, and I am proud that Firenze is at the forefront of that democratisation.”
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