Margin Financing
Competitive financing for active portfolios
Increase your market exposure with a facility designed for professional investors — priced against published benchmarks, accrued daily and settled monthly, with every parameter disclosed before you draw.
Key benefits
- Margin financing rates starting from 4.50% per annum
- Daily interest calculation on the outstanding balance
- Monthly interest settlement in arrears
- No arrangement, commitment or non-utilisation fees
- Transparent, benchmark-linked pricing structure
- Financing available for eligible equities, ETFs and other supported assets
- Flexible borrowing limits based on portfolio value and collateral quality
- No fixed term and no early repayment penalty
How the facility works
Portfolio assessment
Your eligible holdings are assessed against published loan-to-value bands and concentration limits to establish borrowing capacity.
Facility established
A credit line is set against the portfolio. Nothing accrues until you draw — the limit itself carries no cost.
Draw as required
Use as much or as little of the line as you need. Interest is calculated only on the balance outstanding each day.
Monthly settlement
Accrued interest is aggregated and charged once a month. Repay in full or in part at any time without penalty.
Transparent pricing
Our financing rates are benchmark-driven and reviewed periodically to reflect market conditions. The applied annual rate is the benchmark for your loan currency plus the tier spread for your balance.
| Currency | Benchmark | Loan tier | Spread |
|---|---|---|---|
| GBP | SONIA | Below 100,000 | +2.50% |
| 100,000 – 1,000,000 | +1.75% | ||
| 1,000,000 and above | +1.25% | ||
| USD | SOFR | Below 100,000 | +2.50% |
| 100,000 – 1,000,000 | +1.75% | ||
| 1,000,000 and above | +1.25% | ||
| EUR | EURIBOR | Below 100,000 | +2.75% |
| 100,000 – 1,000,000 | +2.00% | ||
| 1,000,000 and above | +1.50% |
Applied annual rate = benchmark + tier spread. Benchmark rates move with market conditions and pricing is reviewed periodically. Spreads shown are indicative; final pricing is subject to account review.
The calculation
Daily interest = Balance × (Benchmark + Spread) ÷ 360Interest is computed on a 360-day basis, accrued each day on the closing balance and settled monthly. A worked example on a £250,000 balance at a 5.95% all-in rate produces a daily charge of £41.32 and a 30-day cost of £1,239.58.
Risk parameters
Every parameter that can force an action on your account is published here. A limit you cannot model in advance is a risk you cannot manage.
Loan-to-value bands
| Asset class | LTV |
|---|---|
| FTSE 100 / S&P 500 constituents | 70% |
| Other listed equities (Tier 2) | 50% |
| Broad-market ETFs | 75% |
| Sector & thematic ETFs | 60% |
| Government bonds | 85% |
Concentration limits apply. Holdings representing an outsized share of the portfolio receive a reduced advance rate.
Maintenance thresholds
The maintenance ratio is collateral value divided by loan balance, expressed as a percentage.
You are required to restore the buffer within the window set out in your facility agreement, by depositing cash or eligible securities or by reducing positions.
Positions may be closed without further notice until the ratio is restored to a safe level. Position selection is at our discretion and executed at prevailing market prices.
Frequently asked questions
How is the interest rate determined?
Your rate is the published overnight benchmark for the loan currency — SONIA for sterling, SOFR for US dollars, EURIBOR for euros — plus a contractual tier spread based on your balance. Because the benchmark is published independently, every rate change can be verified against a public source.
When is interest charged?
Interest accrues daily on the balance outstanding at the end of each day and is settled monthly in arrears. If you repay mid-month, accrual stops on the day of repayment.
Are there any fees besides interest?
No. There is no arrangement fee, no commitment or non-utilisation fee on the undrawn portion, and no minimum monthly charge. Third-party costs such as exchange or custody charges are passed through at cost and disclosed separately.
How much can I borrow?
Borrowing capacity is the sum of each eligible holding multiplied by its loan-to-value band, subject to concentration limits. A diversified portfolio of large-cap constituents supports materially more borrowing than a concentrated position of the same market value.
What happens if the market falls?
Your borrowing capacity is recalculated continuously while the loan balance stays fixed. If the maintenance ratio falls below 130% you will receive a margin call and a defined window in which to restore the buffer by depositing cash or eligible securities, or by reducing positions. At 110% positions may be closed without further notice.
Is there a minimum term or early repayment penalty?
No. The facility has no fixed term and no early repayment penalty. You may repay in full or in part at any time, and interest simply stops accruing on the repaid amount.
Discuss eligibility
We will review your portfolio composition and provide indicative pricing and collateral treatment.