Taken out a personal guarantee on your buy to let mortgage?

Buy to Let PGI is a specialist insurance product for landlords and limited
companies who have given a personal guarantee in connection with a buy-to-let
mortgage. If the property venture cannot repay the loan and the lender calls in
the guarantee, the policy covers up to 90% of your personal guarantee liability – a
higher level of protection than our standard PGI product - protecting your
personal assets from that exposure.

Buy-to-Let Personal Guarantee Insurance (PGI) is specialised insurance designed to protect landlords who have taken out loans to purchase rental properties and provided a personal guarantee. 

In many buy-to-let financing arrangements, lenders require a personal guarantee, meaning that if the rental property or business venture is unable to repay the loan, the landlord’s personal assets may be at risk to cover the outstanding debt.

With Buy-to-Let PGI, landlords gain a financial safety net that covers a portion of the personal guarantee amount in the event of a default. This insurance typically covers a percentage of the loan, providing peace of mind if the rental income does not meet expectations. 

By securing Buy-to-Let PGI, landlords can mitigate the financial risk associated with personal guarantees and focus on growing their property portfolios.

Buy-to-Let PGI is available to landlords and limited companies who have personally guaranteed loans for their buy-to-let properties. 

This insurance is ideal for those who want to shield their personal assets from the financial risks associated with buy-to-let investments, especially in unpredictable property markets.

Directors or owners of limited companies involved in buy-to-let investments can also benefit, as this insurance allows them to focus on managing and expanding their rental portfolios without the concern of personal liability.

Buy-to-Let PGI provides coverage of up to 90% of the personal guarantee amount if the rental property or business venture defaults on the loan. This provides landlords with essential financial security and makes it easier to navigate the challenges of property investment.

No. Buy to Let PGI does not cover ongoing mortgage repayments or rental income
shortfalls. It protects you specifically against a personal guarantee being called in
— for example, if a property sale does not cover the outstanding mortgage and
the lender pursues you personally for the difference.

Buy to Let PGI covers up to 90% of the personal guarantee amount, meaning the
vast majority of your personal liability is covered should a lender call in your
guarantee.

No. Landlord insurance covers risks such as
buildings damage, contents, and loss of rent. Buy to Let PGI covers the personal
guarantee you have given to a lender, protecting your personal assets if the
guarantee is called in. The two products serve entirely different purposes and are
not interchangeable.