MENU Mobile Menu Button

Lend & Borrow Trust Announces Increase in Maximum Loan-to-Value Ratio for Borrowing Against Gold Collateral

Increase in Maximum Loan-to-Value Ratio by LBT

9 Jul 2018

The Lend & Borrow Trust Company Limited (LBT), a fully FCA-regulated, UK-based Peer-to-Peer lending platform, is pleased to announce that, following a review of the loan monitoring and management systems, and a historical analysis of precious metal prices, it has increased the maximum initial Loan-to-Value (LTV) ratio for loans backed by gold collateral from 65% to 75%. (The maximum initial LTV ratio for silver-backed loans remains at 65% due to silver's normally higher volatility.)

LBT clients can thus now borrow up to 75% of the market value of their gold holdings on LBT’s P2P platform to raise funds for various purposes: To purchase more metal; for business or private investments; for bridging arrangements; or any other reason.

John Butler, CEO of Lend & Borrow Trust comments: “We are pleased to make borrowing against gold even more efficient and to further reduce borrowers’ financing costs. The decision to increase the LTV for gold-backed loans by 10% is based on a historical analysis of gold prices: there have been only two trading days in the last 50 years when the price of gold has fallen by more than 10% from the previous day. This ensures that loans backed by gold with a Loan-to-Value of 75% provide a sufficient level of protection to the lenders while giving borrowers a greater option to put their metal to work.”

For more information about LBT's unique value propositions for borrowers and lenders respectively, please visit www.lendborrowtrust.com.

LBT is authorised and regulated by the Financial Conduct Authority to operate an electronic system in relation to lending. Your capital is at risk if you lend. View our Risk Disclosure.

This financial promotion has been issued and approved for the purposes of section 21 of the Financial Services and Markets Act 2000 by Lend & Borrow trust Company Limited, which is authorised and regulated by the Financial Conduct Authority (“FCA”).



Back to Latest News



Join our Peer-to-Peer marketplace Start borrowing

Invest your money