Taking out a loan against the equity in your stocks & shares ISA

📊 Investing
1

Hi there,

I’m wondering if anyone has any experience or if it’s possible to get a mortgage loan against the equity in your ISA? Similar to how someone would get a loan against the existing equity in their house. Interested to hear anyone’s thoughts or experience on this.

Thanks

3 Likes
2

No one has given you any response,so I will give my opinion on this.I don’t think that you can get a mortgage on the equity in your ISA,because what’s to stop you from selling all your stocks after you get the loan :joy:

3

You may be able to have a interest only mortgage or part interest only mortgage depending on the value of your investments, i am a independent mortgage broker so if you want any further information then let me know

1 Like
4

This is a great idea. 212 any thoughts on giving out loads against our stocks ? You will make money off interest and you can liquidate then stocks of the loan isn’t paid off.

5

Quite simple. 212 can place a lock again against the stocks.

6

It is interesting that M1 finance offers such a service in US Borrow - M1 Finance

7

Zuckerberg was supposed to have done this

1 Like
8

I think there’s an article on mr money moustache on this with IB, but with a few catches:

  • If your investment collateral drops within a % of your borrowings, they may force you to reduce your alternative ‘loan’.
  • The rate is variable.

They only used it as a short term stop gap(bridging loan type thing), and never went over 50%.

You could also use it to ‘leverage’ your investments as well.

12

Interactive brokers offer this service. Mr Money Moustache also used it to buy a property at cheap rates (at the time).