Small Business & Mortgage Application

woodlandsmini

Hi all,

We would like to set up a small business, an ecommerce site selling resin jewellery. Myself and my wife are both employed (and will continue to be) with good credit ratings (Experian over 900) the business will hopefully add to our income in the long run, but for now we want to have a go learn the ropes so to speak.

We are also planning to get a mortgage in around 6 months time, does any have any experience with this? We don't intend to use anything to do with the business towards our application, but I'm not really sure how it work.

Thanks in advance

Matt

Savvy_Sue

this is probably not the question you are asking, but ...

You should be aware that if you are using your home for business, both your landlord and your future mortgage company should be made aware of this.

With a social landlord, permission to use your home shouldn't be unreasonably refused, but it depends whether what you are doing has any impact on your neighbours or carries any risks. Car repairs for example are typically forbidden because of the potential 'nuisance'. Anything that involves an increase in footfall may also be refused, especially if it increases parking issues.

If you are holding stock or equipment then you need to have it insured, and regular home contents insurance won't cover it. If you are making the jewellery then you need to consider if there are any hazards in that, either the substances used, or the processes - and again your landlord or mortgage company may have issues.

obviously if you start as a hobby then there's not a lot anyone can say, but do bear all the above in mind!

trailingspouse

You'll be assessed for the mortgage on the basis of your 'proper' jobs.



At this stage, your jewellery making business is really more of a paying hobby, so shouldn't make any difference either positively or negatively.


And I echo everything that Savvy_Sue has said about informing mortgage-provider/insurer know about the business. It's also worth getting Public liability insurance in case someone injures themselves on the jewellery and wants to blame you for it.