logo
倫敦 icon
icon 倫敦 icon
新聞與資訊
Lenders requiring more personal guarantees from buy-to-let landlords
Lenders requiring more personal guarantees from buy-to-let landlords 倫敦
By   RYAN BEMBRIDGE
  • 城市報
  • UK Housing Market
  • Rental Guarantee
  • Buy to Let Guarantee
Abstract: An increasing number of lenders are requiring landlords using limited company buy-to-let properties to provide large personal guarantees as a condition of their mortgages, meaning that their personal property can be used if the landlord falls into arrears.

In 2022, lenders' personal guarantee requirements for limited company buy-to-let mortgages rise to around £509,000.


Analysis by Purbeck Personal Guarantee Insurance shows that this is a significant 55 per cent increase from around £328,000 in 2021.


The average amount of a buy-to-let mortgage for limited companies has fallen from just over £1.1m in 2021 to £948,000 in 2022, suggesting that lenders are asking for a larger proportion of the mortgage to be used as security.

Lenders requiring more personal guarantees from buy-to-let landlords

Todd Davison, managing director of Personal Guarantee Insurance at Purbeck, says: Around 40 per cent of buy-to-let mortgages are structured as limited companies, and this proportion is expected to increase according to industry research.


However, research by Capital Economics suggests that rental income is being eroded by rising costs, which can lead to losses and forced sales.


It is therefore important that landlords seek professional advice, fully understand the risks of signing a personal guarantee and take steps to mitigate these risks before accepting a buy-to-let mortgage from a limited company.


Personal guarantee insurance is a tried and tested method, but there are other steps such as shared guarantees.

留言
icon
請輸入您的國籍
+87
不能為空
電子郵件地址無效 電子郵件地址未驗證!
icon
歡迎訪問 House.com
登錄或註冊以充分利用您的體驗。這也將增加您與經紀人交流的機會。
請輸入有效的電子郵件地址。
繼續使用 Google
提交即表示我接受House.com的   使用條款
icon icon
驗證您的電子郵件
你好 我們剛剛將驗證碼發送到您的電子郵件中。 請檢查並在此處輸入驗證碼以繼續登入。
驗證碼錯誤
沒有收到電子郵件? 請檢查您的垃圾郵件資料夾
icon
banner
Lenders requiring more personal guarantees from buy-to-let landlords
icon 複製鏈接
icon WhatsApp
icon Facebook
icon Twitter