New Business - Mortgage Implications

kezz2675

Hi All,

I am looking to begin a pet sitting business and to do so as a sole trader I will need to register a business address with the HRMC. Ideally, I would choose the house that I live in as the business address but I do not own the house and currently share the home with my fiance who is the sole name on the mortgage.

Can I please get some advice on the below:

1. I cannot currently add my name to the mortgage as I have recently been made redundant.
If my fiance calls the mortgage provider to ask for their permission to register the business in my name will this be an issue? I am only going to use my home for purely administration purposes as my work is out at client's homes.

2. If the mortgage provider says no, what other options are there? External Business address? Virtual Address? All of these are at an extra cost that I can scarcely afford at the moment.

I do appreciate your support.

Thanks.

foxy-stoat

Your option would be to register the address with HMRC and carry on.

If you want to follow the letter of your fiance's lender mortgage contract then they should inform the lender - they should be fine with it unless you get customers visiting the property. We assume that the lender knows that you are living there and have signed the normal "I have no financial interest in the property" etc.

davidmcn

I wouldn't have thought the lender would be interested. Why do you want to involve them?

thermal2844

When lenders ask if you run a business from the premises, they are referring to customers coming to your door. The same applies for insurance. I assume it is a liability issue. However as this is not the case, I think you are perhaps worrying over nothing.

kezz2675

Thanks for the replies all.

I have, as foxy-stoat mentioned signed the 'I have no interest in the property' agreement.

So, does that mean that I can register the business from the address I live in without the mortgage provider being informed as long as my fiance is happy with this?