Personal Guarantees for SME loans must be appropriate and proportionate
December 2023: Responding to FSB’s Super-Complaint to the FCA over SME lending practices Todd Davison, MD of Purbeck Personal Guarantee Insurance says:
Funding Gap for SMEs Linked to Worrying Rise in Personal Guarantees
November 2023: The difficulty small business owners are experiencing accessing funding without having to sign a personal guarantee has become clear. October 2023 saw the largest number of small business owners ever recorded, taking insurance to mitigate the risk of signing a personal guarantee as a condition of a business loan according to Purbeck Personal Guarantee Insurance.
Autumn Statement – Purbeck Personal Guarantee Insurance Calls for Tax Relief Reinstatement for Landlords
November 2023: As property rental prices reach record levels according to the latest ONS data, Purbeck Personal Guarantee Insurance is urging the Chancellor of the Exchequer, The Rt Hon Jeremy Hunt MP to reinstate the ability of landlords to set the full amount of mortgage interest against rental income, before tax is calculated. Currently, all of the rental income made from a property is taxed. Landlords can claim back mortgage interest costs but only up to the basic income tax rate of 20 per cent. The restriction of buy-to-let mortgage tax relief, also known as Section 24 can be avoided if a buy to let mortgage is taken in a limited company structure but this type of mortgage can be more expensive and often requires the landlord to sign a personal guarantee.
Proportionate use of Personal Guarantees is key to support access to funding for SMEs
November 2023: Responding to the oral evidence provided to the Treasury Committee’s Inquiry into SME finance, Todd Davison, MD of Purbeck Personal Guarantee Insurance says:
Understanding whether Personal Guarantee Insurance is Right for You
While a personal guarantee can be the golden ticket in helping you secure crucial funding for business ventures or expansion, it can present an enormous risk to your assets.
Personal Guarantee Risk Heightens for Landlords as 74% of Buy To Let Mortgages Taken in Limited Company Structure
November 2023: As the number of buy to let mortgages taken in a limited company structure rises, and property values fall, Purbeck Personal Guarantee Insurance, has launched the first personal guarantee insurance protection for Professional Landlords.
How Does the Bank of England Interest Rate Freeze Affect my Buy-To-Let Mortgage?
In a development that has sent ripples through the financial industry, the Bank of England recently implemented a freeze on interest rates, marking the first time in two years that the rates have remained unchanged. This measured approach comes as the Bank of England continues to stabilise the economy.
September sees rise in confidence to secure finance amongst SMEs
Headline Figures:
Landlords Warned over Personal Guarantee Risk as Average BTL Mortgage Falls to £895k
October 2023: As Buy to Let mortgage rates start to fall and the number of landlords securing limited company buy to let mortgages rise, Purbeck Personal Guarantee Insurance is warning Professional Landlords to keep their eyes wide open over the risks of personal guarantees as a condition of the mortgage. Purbeck’s analysis shows the average Limited Company Buy to Let Mortgage was £948k in 2022. So far in 2023, the average Buy to Let Mortgage has shrunk to £895k based on Purbeck’s data.
How to Mitigate Risk as a Business Owner During Uncertain Times
2023 has been a tough year for UK businesses, particularly SMEs, who have had to navigate treacherous economic waters.
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