If you have an offshore investment, why not take advantage of it by releasing some of the policy's value which can be used for any worthwhile purpose. Conversely if you have an initial investment, you may wish to leverage (gear up) the investment. In either case, we recommend you seek appropriate advice from your Accountant or a suitably qualified Financial Advisor.

In either case, we can assist with your financing requirements. Below is a summary of key features:- 

Currencies: Loans are available in Sterling, US Dollar or Euro (matched to currency of policy).  

Loan Amount: From £50,000 to £750,000 or currency equivalent.

Loan to Value: The maximum loan considered against any policy is

• 40% of the surrender value (cash value) in the case of equity release and
• 55% where the purpose is to leverage an existing investment. 

Margin Call: Where the loan value increases to a level of 10% above the agreed maxima (i.e. 50% or 65% as above), the bank will require additional investment to be made by the client or borrowing to be reduced within 14 days in order to restore the “loan to surrender value” back to 40% or 55% respectively.  If this is not achieved or, should the loan reach a level of 20% above the agreed maxima (i.e. to 60% or 75% of the surrender value), the bank will immediately instruct the sale of sufficient assets within the policy in order to reduce or repay the facility.

Term: The loan facility is granted for a period of 12 months.  At the anniversary of the loan, subject to the account being managed in line with the terms, the arrangement is seamlessly renewed for an additional 12 months.

Interest Cover: To be funded on quarterly application or, by exception, rollup permitted subject to maintenance of agreed loan to value ratio.

Interest Rate & Establishment Fee: Generally 3% above Libor (depends on the composition of the underlying investments) and 1% Arrangement Fee.

Principal Investment Suitability Criteria: The following criteria apply to all and any fund against which is included on the list of acceptable collectives.

• Minimum fund size £20 million or currency equivalent
• The fund must deal at least monthly
• The fund must have a three year track record
• The fund is appropriately regulated and open to subscription by private investors
• No fund within an Offshore Bond to be more than 25% of total (otherwise capped at this level for Loan to Value calculation purposes)
• The fund to be listed on Reuters Hindsight

There is a possibility that you can experience a loss of all of your investment and therefore it is prudent not to invest money that you cannot afford to lose. You should be aware of all the associated risks and seek advice from an independent financial advisor if you have any questions or concerns or are not sure of what your risk level is.