Personal Guarantee

By Justin Whitelock

Founder of Mortgage London (a trading style of City Finance Brokers Limited, authorised and regulated by the Financial Conduct Authority, FCA No. 766295)

A promise by an individual, typically a director or shareholder, to be personally liable if a company borrower cannot meet the mortgage debt.

Related glossary terms

Early Repayment Charge (ERC)

A fee that may apply when a borrower repays all or part of a mortgage during a specified period, typically calculated as percentages stepping down over time.

Visa Mortgage

A mortgage assessed for applicants whose right to remain in the UK is based on a visa rather than indefinite leave or settled status.

Non-Resident SDLT Surcharge

An additional 2% SDLT charge in England and Northern Ireland when a buyer is treated as non-UK resident, based on 183-day UK presence test.

Foreign Currency Income

Income paid in non-sterling currencies, with lenders applying a discount to the converted sterling figure to reflect currency volatility.