starting a cake business from home - mortgage

lessonlearned

Provided you conform to all the necessary hygiene regs etc and you do not have a steady stream of customers parking outside the house, cluttering up the street, then I really can't see that you are likely to be contravening any rules or regulations.

You are making a few cakes in a domestic kitchen, you are not employing staff. I really cannot see an issue here.

You are not doing anything remotely "noisy or noxious"- i.e. making candles or a running a small soap making enterprise, which is the usual wording in covenants.

You are not using chemicals or flammable materials (yes you might burn the odd cake…)

If you were a dressmaker there would be no issue so I cannot see that a bit of baking is any different.

By all means do a plan for your mortgage company if you feel safer but I think the person you spoke to was being a bit over zealous. I used to work for a building society and we wouldn't have insisted on a commercial mortgage for such a small scale operation.

Obviously if your business really takes off and you start employing staff and converting your kitchen to a more "commercial type kitchen" then that would be a very different matter.

By then you would probably be looking at commercial premises anyway because the average kitchen wouldn't be big enough and you would need to look at storage facilities for all your ingredients and equipment.

I don't think you need worry too much at this stage.

lincroft1710

lessonlearned wrote: »

By all means do a plan for your mortgage company if you feel safer but I think the person you spoke to was being a bit over zealous. I used to work for a building society and we wouldn't have insisted on a commercial mortgage for such a small scale operation.

I'm not sure if this is the case or that the mortgage company are hoping to make a few extra ££££ from the OP's mother.

Kayalana99

lincroft1710 wrote: »

I'm not sure if this is the case or that the mortgage company are hoping to make a few extra ££££ from the OP's mother.

Put the to ends together though...imagine someone baking cakes for a few friends and family not even making £100 a year....imagine someone as above turning it into a full scale operation, taking employees on changing kitchen etc...

As for now, they are asking for more information so they can SEE what type of business it is before they make their decision... obviously they have to do things by the book and will ask the same of anyone I would bet.

I would of not bothered personally even mentioning it but if you want to do it right send the plan in and just see what they say...

lessonlearned

Kayalana99 wrote: »

Put the to ends together though...imagine someone baking cakes for a few friends and family not even making £100 a year....imagine someone as above turning it into a full scale operation, taking employees on changing kitchen etc...

As for now, they are asking for more information so they can SEE what type of business it is before they make their decision... obviously they have to do things by the book and will ask the same of anyone I would bet.

I would of not bothered personally even mentioning it but if you want to do it right send the plan in and just see what they say...

This was my point - whilst the business is at the "fledgling stage" it's hardly worth mentioning…..Once it grows then revisit the issue.

Without being negative the business may not even get off the ground and the OP will have incurred all manner of costs - arrangement fees for a new mortgage, higher interest rates etc.

Better to adopt a wait and see approach and then look for more suitable commercial premises as and when.