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.
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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.
2023 has been a tough year for UK businesses, particularly SMEs, who have had to navigate treacherous economic waters.
Business buy-to-let mortgages provide an excellent opportunity for businesses to invest in commercial property, whether to be let to a third party or to be used as premises to trade from.
Investing in your business through a buy-to-let mortgage can offer substantial rewards, helping you to secure commercial property to expand your operations or gain profit through letting to a third party. However, it’s essential to be informed and prepared for the potential risks.
A personal guarantee is a pretty serious commitment, but it’s not one to shy away from.
For the last three years, UK businesses of all sizes and sectors have experienced significant financial challenges.
Applications for Personal Guarantee Insurance Down 13%
Subscribe now for expert tips on safeguarding your personal assets while growing your business.
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For more information or to speak to one of our underwriters contact us today.
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