Newly Self Employed - Help with Loans

Lisa1978

Good Morning, 

My husband has recently changed employment to self employed.  For his work he needs to upgrade his van to a larger transit.  He is finding it difficult to get loans due to his working circumstances.  Based on this - we can either top up our joint loan or remortgage (we have lots of equity).  However when deducting the £300 a month repayment off his income as an allowable expense - is this ok if the repayment is either coming out of our joint loan or as part of our mortgage payment and not out of his sole bank account? 

Thanks 

Ebe_Scrooge

It would be very unwise to finance the van via your mortgage (even if they allowed you to do that).  Has he looked at finance from dealerships?  It can often be easier to get finance via the dealer, rather than a personal or business loan, since the finance is essentially secured against the vehicle.  It would also keep things a lot simpler in terms of tax returns, accounting for allowable expenses, etc.

Lisa1978

Ebe_Scrooge said:

It would be very unwise to finance the van via your mortgage (even if they allowed you to do that).  Has he looked at finance from dealerships?  It can often be easier to get finance via the dealer, rather than a personal or business loan, since the finance is essentially secured against the vehicle.  It would also keep things a lot simpler in terms of tax returns, accounting for allowable expenses, etc.

Hi i would agree with you and happy we have our mortgage down i don't fancy adding to it.  He is able to get a few loans but the rate is 26.9%! We haven't tried a dealership yet as we were thinking of a 2nd hand one.  Maybe a dealership would be a better move.  Thank you.