Secured Lending and Margin Loan opportunities
Borrowing solutions tailored to you
Cashflow is an important feature of strategic wealth management and being able to access money quickly for personal needs, such as investing funds into your business, purchasing property, or buying a yacht, shouldn't require you to sell your investments.
Instead we offer a secured lending solution that enables you to access money when you need it, without having to sell part of your portfolio.
Why borrow?
If you want your money to be working hard for you over the long term you have probably invested a large portion of your wealth. This is ideal for most of our clients but it does tie up some of your assets, and if you unexpectedly need access to a significant sum of cash, for your daughter's wedding for example, you might not want to sell some of your investments in order to get to your money. You could miss out on further growth potential of the asset, plus you face the transaction costs of buying and selling funds or equities for example.
Citi International Personal Bank understands this and, through our secured lending can offer you money on a short-to-medium term basis to enable you to get on with your day-to-day personal and business needs.
Take advantage of our secured lending facilities
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Who is secured lending suitable for?
- Anybody who needs access to short- to medium-term borrowing but doesn't want to disrupt their investment strategy.
- Those who have significant wealth in assets held with Citi International Personal Bank but who would like to borrow money for a personal reason, such as paying for your children's university fees.
- Those who are willing to make regular interest payments on their debts and have their assets pledged as collateral to secure their borrowing.
What lending facilities do we offer?
Citi International Personal Bank offers both fixed-term loans and overdraft facilities.
Fixed-term loans
For those who need a set amount of money for a specific period, we have fixed-term loans that you can secure with your assets. We work out the maximum we will lend based on which assets you decide to secure.
You can choose to borrow in the currency that best meets your needs from US Dollars, Euro, Sterling, Swiss Francs, and Japanese Yen. Plus you can borrow for a term that suits you, choosing from 3, 6, 9 or 12 months.
Overdraft facilities
If you require more flexible borrowing facilities that allow you to draw on credit as and when you need to, you could open one of our overdraft facilities.
By choosing this option you will only pay interest on the amount you have borrowed (or are overdrawn by), and you will be given an overdraft limit to determine the maximum you can borrow.
Borrowing to buy property – referral to Charles Cameron and Associates
If you want to fund a property purchase, offshore mortgage could be a more suitable and competitive way of borrowing. We have forged a partnership with one of the UK's leading specialist mortgage advisers, Charles Cameron and Associates, to offer our clients access to international mortgage assistance. Find out more about offshore mortgages.
How it works
You need to provide some of your investment assets, held with Citi International Personal Bank, as collateral or security against the loan or overdraft. This works similar to a mortgage, where the property is secured against the borrowing.
Using your chosen assets as collateral, we work out a 'loanable value' which is based on different factors, such as the type of investment, how risky it is and how easy it is to sell.
Then we work out the maximum amount you can borrow based on the current market value of your investments, and the rate of interest based on the amount borrowed and the assets you have with Citi International Personal Bank.
This is called 'borrowing on margin' and importantly this maximum amount can decrease if the value of your investment declines. If your assets reduce in value and are worth less, we will decrease the maximum amount you are able to borrow.
This can have an impact if you have already borrowed more than this new maximum amount.
In this situation you will have to repay a portion of your borrowing to ensure you are within the new maximum borrowing amount (based on the new lower value of your collateral). If you cannot do this we may have to sell some or all of the assets you have secured against the loan in order to repay the shortfall. Alternatively, you can secure more of your assets against the loan.
Take advantage of our secured lending facilities
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Important information
Secured lending is only accessible to high-net-worth clients with substantial assets available to offset against their borrowing needs. This level is defined by the UK Consumer Credit Act and your Relationship Manager can give you more information about the qualifying levels.
It is only suitable for sophisticated investors who understand the implications of borrowing on margin and realise that they may have to cover any shortfall if the value of their investments drops during their borrowing term.
