HomeFWJ TakeawayResourcesCan I use my home as collateral for a business loan?

At Francis Wilks & Jones we often come across the question, “Can I use my home as collateral for a business loan?”

It is possible to use your home as collateral for a business loan and it works by the lender taking a guarantee of the loan obligations from you personally and to support that obligation taking a charge over your home as security. Careful consideration must be taken before using your home as collateral you may lose your home if the business defaults on its business loan.

  • the advantages of using your home as collateral are that you are likely to be able to get a lower interest rate than with other types of loan and if the value of your property is high you may be able to borrower more money than if the loan was secured against a lower value business asset.
  • the disadvantages of using your home as collateral is that you can be made homeless if your business does not keep up with its loan repayments as the lender will have the right to repossess your home and sell it.

Our expert team of banking and finance solicitors at Francis Wilks & Jones are here you with your business loan questions, such as, “Can I use my home as collateral for a business loan?” Contact one of team of expert friendly banking and finance lawyers now for your confidential consultation. Whatever your business loan requirements, we are the experts to help you. Call us now. Let us help.

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