Running a buisness from home.

merlin68

What happens if you run a buisness from home. If the terms of your mortgage say you can't.

crazyguy

If its admin stuff then its not normaly an issue, if you have loads of visitors a day then I think its different,

I do admin work from home and it does not affect my mortgage / my insurance seems a bit cheaper as the house is classed as occupied all day !

WhiteHorse

Then strictly speaking, you can't. The house deeds often contain a covenant to that effect as well.

merlin68

Is there actually anything they could do to stop you though?

GEM1903

I guess the mortgage company might not be able to do much to stop you , but my concern would be the insurance - if you need to claim and they find out they might not pay out - which kind of defeats the point of paying the premium in the first place!

Good luck with your buisness!

holly_hobby

If you breach the terms of your mortgage contract, and the lender becomes aware of it - they have the right to end the contract due to your breach, which in effect means you have to find yourself a new lender !!


As a self employed individual you would in that event (and dependant on LTV) need 2/3 yrs accounts to support the lending required, and meet the new lenders other status and criteria requirements.


This is not to scare you, but just to make you aware of what CAN happen ... (although whether the lender would actually go this far, if your mge had been managed effectively is doubtful, but possible , and would probably be influenced by what type of business was being conducted)


Hope this helps


Holly