Certain banks have stated that any director who secures a loan of up to £250,000 will not be required to sign a personal guarantee (pg).
For loans in excess of £250,000 the directors may be required to sign a PG although their principal private residence will not form part of the security. However, other assets such as holiday homes, buy to let portfolios, share portfolios and other assets may be subject to security.
Source The Times.
Whilst you may think that your private residence is protected if you default on the loan the lender could instigate recovery proceedings that could put your personal property at risk in court and insolvency proceedings.
It is important to ensure you take appropriate advice prior to re-financing. If you have any concerns please contact us at TH Financial Recovery to discuss.