Change of director and directors loan guarantees.

[noddy]

I'm looking at doing a property refinance in 6 months to get some extra equity but may want to do a change of director (swap wife to be director) in 3 months for a new venture starting up.

How does it work if I change the directorship in 3 months? Does the bank ask for a new guarantee to be filled out or is it up to me to tell them?

If the existing director is fine with guarantee to stay till the 6 months refinance, does it matter?

Would the bank actually know and come looking or is it up to me to let them know?

Noddy

 

[Rolf Schaefer]

Hi Noddy,
it is up to you to notify the bank (it's all in the small print)

 

[Rolf Latham]

Hiya

This is one pf the reasons that many lenders are now looking for Registered Mortgage debentures/ fixed and floating charges.

This helps to ensure that directorship isnt changed, and protects the banks other interests.

As Rolf S said youd better follow the fine print.

ta

rolf

 

[noddy]

Hi Rolf & Rolf,

Thanks for the replies. Time to read the fine print.

Noddy