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  • Mortgages & Finance

    Do I have a problem (Floating Charge)?

    Wow. Thank for reporting back. I might give them a call early next week to remove mine.

    Can I ask which department you spoke to? and did they simply agree to remove it or did you need to convince them?

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    I just called their number (0345 849 4060) from the Contact Us page on their website and explained I understood that they no longer used floating charges and so wondered if I could have mine removed (As it could affect my ability to buy more properties in future.). They seemed to know what I was talking about and transferred me to the "Securities" team, who checked a couple of things on my account and agreed to remove it. They were actually very helpful, seemed knowledgeable and no I didn't have to convince them.

    Hopefully you'll get the same service.

    Thanks

    Ben

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    Hi Ben,

    A floating charge on your limited company is not such a problem for many lenders.  To follow your example I contacted TMW and asked them directly.  It was as I thought…they do not mind about a floating charge on the company but were there to be a charge on other BTL properties owned by the company (that do not have Paragon mortgages on) then lenders would generally have a problem as that would mean they could not get first charge on the property they are lending upon. 

    But floating charges on the company are not that common – if you are not sure what the floating charge is actually doing then I suggest you call Paragon and ask them to define what it is exactly.  Usually lenders just get personal guarantees from the directors but if Paragon have asked for a floating charge then I would hope they have a good reason. 

    If you are using a broker and still have concerns then I would ask that broker to survey a few of the best BTL lenders and ask them the same question you did here to make sure you have options.

    I hope that helps,

    Cat

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    Call the PT Broker Hotline on 0333 363 6507 or email us at ptbrokers@johncharcol.co.uk