Stressed out - could do with some reassurance if possible?!

Peter74

MWT said:

Peter74 said:

Also, with the majority of businesses being affected in some way or another by covid19, for an affected business to turn down an interest free loan (12 months) of £50k would have been a poor financial decision IMO, even if said business didn't require it to stay afloat.

As ever, on this group at least, you have to consider the wider perspective of the need to apply for a mortgage...

If you only had to worry about the business itself then I'd agree, a free loan is always worth considering.

... but if you are planning to apply for a mortgage and you have a controlling interest in the business that pays the salary/dividends that you need to justify the mortgage then it can turn out to be a poor choice to take a business loan that you didn't really need as it signals a potential lack of confidence...

Yes I would agree with this but for the point in my original post being our "dream house" was put up for sale... this happened after the business received the BBIL.  Obviously any type of loan immediately preceding a mortgage application would be viewed as detrimental.  Had we known we'd be intending to move back then, we could have applied for the BBIL after the mortgage application.

csgohan4

Peter74 said:

MWT said:

Peter74 said:

Also, with the majority of businesses being affected in some way or another by covid19, for an affected business to turn down an interest free loan (12 months) of £50k would have been a poor financial decision IMO, even if said business didn't require it to stay afloat.

As ever, on this group at least, you have to consider the wider perspective of the need to apply for a mortgage...

If you only had to worry about the business itself then I'd agree, a free loan is always worth considering.

... but if you are planning to apply for a mortgage and you have a controlling interest in the business that pays the salary/dividends that you need to justify the mortgage then it can turn out to be a poor choice to take a business loan that you didn't really need as it signals a potential lack of confidence...

Yes I would agree with this but for the point in my original post being our "dream house" was put up for sale... this happened after the business received the BBIL.  Obviously any type of loan immediately preceding a mortgage application would be viewed as detrimental.  Had we known we'd be intending to move back then, we could have applied for the BBIL after the mortgage application.

Everything is easy in hindsight wouldn't it? I could be a lottery winner by now
What's done is done, have to wait for the underwriters to decide

Peter74

csgohan4 said:

Peter74 said:

MWT said:

Peter74 said:

Also, with the majority of businesses being affected in some way or another by covid19, for an affected business to turn down an interest free loan (12 months) of £50k would have been a poor financial decision IMO, even if said business didn't require it to stay afloat.

As ever, on this group at least, you have to consider the wider perspective of the need to apply for a mortgage...

If you only had to worry about the business itself then I'd agree, a free loan is always worth considering.

... but if you are planning to apply for a mortgage and you have a controlling interest in the business that pays the salary/dividends that you need to justify the mortgage then it can turn out to be a poor choice to take a business loan that you didn't really need as it signals a potential lack of confidence...

Yes I would agree with this but for the point in my original post being our "dream house" was put up for sale... this happened after the business received the BBIL.  Obviously any type of loan immediately preceding a mortgage application would be viewed as detrimental.  Had we known we'd be intending to move back then, we could have applied for the BBIL after the mortgage application.

Everything is easy in hindsight wouldn't it? I could be a lottery winner by now
What's done is done, have to wait for the underwriters to decide

Yes of course, it still helps to talk about things though.