Yorkshire Bank - Business Offset Mortgages

itsnowtime

Hi Everyone...

I'm just looking for your opinion really...

I'm in the process of launching my own business which will be a Ltd company and I've been looking at the business offset mortgage that the Yorkshire Bank do...

My other half already banks at the Yorkshire and we will be looking for a personal mortgage that is 75% LTV or less (in the future)

I understand from reading the literature that you can use the funds in your business accounts to offset the interest against your mortgage..

I'd just like to know if anyone has used them / used the product. The reason I ask is that I want to establish myself correctly from day one - so if the mortgage product is any good it makes sense for me to put my business account there - then when I'm ready to apply they have all the history etc... and I don't need to mess around changing accounts over..

Your opinions much appreciated
Thanks

RufusA

Have you checked the literature to ensure this is available to Ltd companies. When I looked in the past (not at YBS though), the business offsets were only available to self employed and partnerships.

Also worth speaking in depth with your accountant about it, particularly if there are other shareholders/investors involved in the proposed company.

It would get very messy separating out the business and personal aspects of the offset. Particularly if you need one to fund the other - i.e. taking money from the mortgage pot to kick start the business. It would also be hard to justify the company choosing a bank account on the basis of how it benefited the mortgage of the director.

I'd also want to be 100% confident that if the business folded it would have no impact whatsoever on the mortgage or property. I wouldn't want the bank repossesing your home, or using mortgage overpayments to pay associated business liabilities!

HTH - Rufus.

itsnowtime

Thanks Rufus that is very sound advise.

I've not looked into anything too in depth at this stage - Fortunately I don't need any capital to start the business.

My OH and I were looking to move before I had the opportunity to branch out on my own.. -

So at present we are just sitting tight but I wanted to explore all my options and plan for the future..

I'll look into it a lot more...

happybroker

in my experience banks no longer treat you any differently if you have a long standing relationship with them but may well push fairly hard for your business if all of you banking is elsewhere.

if you don't need a counter service at the bank then Abbey will offer you free business banking for life by the way.

itsnowtime

Thanks Happybroker..

I'm just trying to get myself into the best position possible.

Prior to taking the leap into going out on my own - we were looking to move house by selling 2 and moving into 1.

That of course is now on hold until I can get the business up and running..

Btw - if I take out an interim contract for 12 months - will mortgage companies take this income into account?

Thanks