Business Loan

Jond · 5 March 2017 at 6:31PM

Hi all,

I have a (very) small business that I run in my spare time. It's been going for about 10 months now, and I took out a small business loan when I started it. The loan is all up to date, no problems, and payments are taken each month from my business bank account.

Because the business is young, and not particularly profitable at the moment, I won't be declaring income from it towards my mortgage. I'm not sure whether I need to declare the loan or not? It doesn't show on my credit file (which I thought was odd), and the business is covering the payments nicely. But I don't want to fall foul for not declaring it! Out of curiosity, would the lender be aware of it if it isn't on my credit file? I know that's not the point, I just wonder about what other information sources the lenders have that we don't! Ha!

fewgroats · 5 March 2017 at 6:42PM

It sounds that if you admit your change of circumstances you will have to pay more towards your mortgage. Not sure how you stand legally.

Jond · 5 March 2017 at 6:45PM

Thanks for the reply. I actually meant, should I declare it on a new mortgage application when we look to move later this year? Would it not just be confusing, since it isn't on my credit file?

kingstreet · 5 March 2017 at 7:04PM

If it's in your name, you have to declare it.

glosoli · 5 March 2017 at 7:06PM

If the loan is in your business name then that is fine, however if the loan is in your personal name, then you need to declare it. If your application is referred to underwriting for further assessment, they may very well discover it as it isn't simply experian that they look at.

Jond · 5 March 2017 at 7:14PM

Thanks for the replies. I guess that's what I need to figure out - is it in my name or the business'? I've a feeling that it's me "trading as", but the fact that it doesn't show on any of the CRAs makes me wonder. It's annoying because it might be detrimental but I can't use the income from the business to offset it!

glosoli · 5 March 2017 at 7:26PM

How much is it per month? Will it likely make a difference to what your trying to achieve?

Jond · 5 March 2017 at 7:30PM

It's about £130 a month. I don't know that it would be the end of the world, but if it's the businesses loan, then I'd rather not declare it if it's unnecessary. If it's in my name - as you say - I'd have no choice.