How much can you borrow against shares?
The answer is the loan-to-value — the fraction of your pledged portfolio advanced as cash. What sets it, and where different portfolios tend to sit.
How much you can borrow against your shares is set by the loan-to-value (LTV) — the percentage of your pledged portfolio's market value advanced to you as cash. There is no fixed figure and no rate card. A diversified, liquid book of large-capitalisation shares supports a higher advance than a single concentrated position, because the lender can value and, if needed, realise it with far greater confidence.
- The amount you can borrow equals the LTV multiplied by the market value of the pledged portfolio.
- LTV is calibrated to the specific holdings; it is not published as a rate card.
- The drivers are liquidity and free float, volatility, concentration, position size relative to the market, and recourse.
- Illustratively, advances run from roughly 20% for a concentrated small-cap up to around 65% for a diversified large-cap book.
- An indicative LTV calculator gives a transparent estimate before any conversation begins.
The short answer: it is the LTV
Borrowing against shares means pledging them as collateral for a loan and drawing cash against a fraction of their value. That fraction is the loan-to-value. If a portfolio worth a given amount attracts a 50% LTV, the advance is half of its market value; the remaining half is the buffer that protects the lender if prices move. The LTV, then, is the whole answer to "how much can I borrow" — and the interesting question is what sets it.
What drives the LTV
Five variables do most of the work, and they all come back to one idea: how confidently the lender can value the collateral today and realise it tomorrow.
- Liquidity and free float — a stock that trades heavily, with a large free float, can be valued and sold without moving the price, which supports a higher advance.
- Volatility — the further a stock's price can swing, the larger the buffer the lender needs, and the lower the LTV.
- Position size relative to the market — a holding that is large against the stock's daily volume is harder to exit, and is discounted accordingly.
- Concentration — a diversified portfolio spreads risk that a single position concentrates, so it supports a higher LTV than one name of the same value.
- Recourse profile — a full-recourse structure supports a higher LTV than a non-recourse one, because the lender's protection extends beyond the collateral.
LTV by collateral type
The table below is illustrative. It ranks collateral by how confidently it can be valued and realised, and shows where each type tends to sit within the firm’s disclosed envelope of roughly 20% to 65%. The higher-quality, more liquid the collateral, the closer to the top of that range; a single concentrated position sits nearer the floor. It shows direction and shape, not a quote, and where a specific position sits is confirmed only after a review.
| Collateral type | Indicative LTV | What drives it |
|---|---|---|
| Cash and money-market instruments | Top of the range. | Minimal price risk and immediate valuation; the strongest form of pledge. |
| Government and investment-grade bonds | Upper band, toward the ceiling. | High credit quality and liquidity, with only modest price volatility. |
| Diversified large-cap equity portfolio | Higher band, up to around 65%. | Deep liquidity, broad diversification, and low single-name risk. |
| Single large-cap holding | Upper-to-middle band. | Liquid and well-covered, but concentrated in one name. |
| Mid-cap holding | Middle-to-lower band. | Thinner liquidity and higher volatility than large-caps. |
| Concentrated small-cap position | Lower band, from around 20%. | Limited free float, higher volatility, and harder to realise. |
Illustrative ranges only, within the firm’s disclosed 20–65% envelope. Not an offer, and not a commitment to lend. The applicable LTV depends on the specific holdings and is confirmed after review.
A worked example (illustrative)
Suppose a holder pledges a diversified, liquid portfolio of large-cap listed shares worth £10 million. At an illustrative loan-to-value of 55% — within the disclosed 20–65% envelope — the facility would advance roughly £5.5 million in cash, with the shares remaining pledged and owned by the holder. A single concentrated small-cap position of the same value might instead sit nearer the 25–30% end, advancing closer to £2.5–3 million. These figures are illustrative only and not a quote; the applicable LTV is confirmed after a review of the actual holdings.
See where a specific position might sit — transparently.
Open the LTV calculator →Why there is no single number
A published rate card would be convenient, but it would also be misleading. Two portfolios of identical value can support very different advances: one diversified across liquid large-caps, the other concentrated in a single thinly traded name. Pricing them the same would either overstate what the second can safely bear or understate what the first deserves. That is why a Lombard loan is calibrated to the holdings rather than sold off a shelf, and why any figure quoted before a review is indicative. The discipline behind the number is the same discipline that keeps the facility sound over its life.
How to get an indicative figure
Two steps. First, the firm's indicative LTV calculator gives a transparent, no-obligation estimate from a few characteristics of the position. Second, a short review with a principal produces a figure calibrated to the actual holdings. No material non-public information is needed at the enquiry stage — an indicative range can be established from publicly available details about the position. For the mechanics behind the number, see what a Lombard loan is; for what it costs, see Lombard loan interest rates and costs.
Read next.
What is a Lombard loan?
The pillar page: mechanics, LTV, recourse, tenor, and costs in one place.
Read →Interest rates & costs
How pricing works: reference rate plus spread, and why structure beats the coupon.
Read →Borrow without selling
Keep ownership, dividends, and upside — and defer the disposal a sale would trigger.
Read →Borrowing against shares, answered.
Q · 01How much can I borrow against my shares?
Q · 02What is a typical loan-to-value for a share-backed loan?
Q · 03Can I borrow against a single stock or a concentrated position?
Q · 04How do I get an indicative figure for my portfolio?
Q · 05How much stock do you need to borrow against it?
Q · 06How much can I borrow against my stock portfolio in the UK?
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