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Would a business loan impact on a self employed mortgage application?
FeistyFidget
Posts: 1,368 Forumite
Hi all, I have been a registered sole trader since 2010 prior to this we had a mortgage granted on an employee basis.
Next year we are hoping to move from a flat into a house and I know that being granted a self employed mortgage (I'm main income provider) is going to be tricky.
I have just been given the opportunity to expand my current business by absorbing an established shop (owners are retiring). I will need to take out a £5k business loan to help fund this.
So my question is will taking out a business loan affect a banks desire to lend? I know that a personal debt would, but not too sure about a business one - thanks in advance
Next year we are hoping to move from a flat into a house and I know that being granted a self employed mortgage (I'm main income provider) is going to be tricky.
I have just been given the opportunity to expand my current business by absorbing an established shop (owners are retiring). I will need to take out a £5k business loan to help fund this.
So my question is will taking out a business loan affect a banks desire to lend? I know that a personal debt would, but not too sure about a business one - thanks in advance
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2024 Challenges
Live in the moment more and appreciate the small things
Live in the moment more and appreciate the small things
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Comments
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Self employed dont have the benefit of their liabilities being sheltered under a company. So, any debt they have, whether it is business intended or personal goes against them.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Thank you dunstonh [/COLOR]2024 Challenges
Live in the moment more and appreciate the small things0
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