Sole-trader to LTD change eligibility

looknohands

Recently I setup a LTD company that has taken over all of my sole-trader clients, contracts etc..
It's the same registered address as the ST but is a new company, different name, has it's own UTR and I am the sole director. The revenue, profit etc will remain exactly the same and on the same course, increasing this year.

A friend who is a mortgage broker has told me I could apply for a mortgage right now and this wouldn't effect eligibility as it's obviously the same business, despite not having a years accounts. Mentioning the registered address as being key to tying it together. How true is this?

Can you prove it is the same business as it's not legally connected at all, it's an entirely new and separate legal entity, other than me owning it!

Just looking for a second opinion, I wouldn't use the friend as a broker, our current deal runs for just under a year and am interested if we'll be in a situation to move or if we'll need to wait a couple of years for accounts.

amnblog

If your friend a known liar?

Tells you yes, you don't believe him, and are not going to use him anyway.

looknohands

Umm not really no... intelligent, experienced, and very trustworthy.

Mixing friends and business isn't really for me, particularly financial services which can be sensitive, it's a lot of pressure for a friendship, hence why I wouldn't use her.

I like how you assumed it was a him...

ACG

I agree, I hate doing mortgages for friends/family. I try to pass them over to another broker I know.

I set up originally as a sole trader. Last year I went limited on the advice of my accountant, slightly different business name but same industry, offices etc. Before committing to going limited I ran it by a few lenders just to ensure I would have enough options to get a decent enough rate. I remortgaged last month and it is due to complete next week.

So it can be done with high street lenders. Not all lenders will be open to it, but there is no reason why it can not be done at normal high street rates based on what you have said.

amnblog

looknohands wrote: »

I like how you assumed it was a him...

Appalled at this. I usually make a point of not assuming sex on any circumstances. Thought I had read the word 'him' in the text.