Self-builders who have secured a personal guarantee-backed loan can now protect their assets with personal guarantee insurance from Purbeck
Purbeck Personal Guarantee Insurance, the U.K.’s first and only provider of personal guarantee insurance, is now available to self-builders.
Self-builders, as well as property developers, are often required to provide additional security to the lender by signing a Personal Guarantee.
Insurance provides protection for self-builders if the development fails
The insurance can be used in cases where the self-builder has created a limited company structure for their self-build project. If the development fails the lender can seek recoveries from the Guarantors personally.
Todd Davison, MD of Purbeck PGI said: “It can often be the case that self-builders create a limited company structure to manage the finances of their building project and create some protection around their personal finances.
Settle up to 80% of the debt
“However, that can all be for nothing if they are asked to sign a personal guarantee as a condition of funding. We have therefore developed a solution for self-builders as well as property developers to protect their assets should their building project fail.
“Personal Guarantee Insurance will settle up to 80% of the debt, rather than the individual’s current home, savings, or other assets.”
