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.

Professional Landlords using Limited Company Buy to Let Mortgages are commonly asked to sign a personal guarantee as a condition of the mortgage.  This provides the mortgage lender with direct recourse to the professional landlord’s personal estate should the landlord fall into arrears and there is a shortfall following property repossession by the bank.  This scenario could become increasingly likely if property prices keep falling.

Purbeck Professional Landlord PGI will cover 80% of an outstanding mortgage if repayments fall into arrears and the lender seeks to take action to recover the property.

Part and parcel of buy to let insurance cover is access to Purbeck’s Support Desk when a Professional Landlord is facing financial distress, providing access to expert financial advice and mentoring support to help prevent repossession of a property.

Todd Davison, MD of Purbeck Personal Guarantee Insurance said: “Mortgage advisers will be aware of the personal guarantee risk associated with mortgages taken in limited company structures but there have been few options when advising clients on the ways they can limit that risk. Now, for the first time, advisers can offer Personal Guarantee Insurance as a solution to that challenge.  Our introductory process is very simple and a dedicated portal allows advisers to keep track of applications.

“Purbeck has supported over 2,000 directors on over £275million of Personal Guarantee commitments over the past 6 years in respect of business loans. We are delighted that we can now offer Purbeck Professional Landlord PGI