Can I sell crafts on Etsy or my own website if my mortgage prohibits business use of my house? (UK)

MadRatters

My sister (27) and I (28) have separate homes. I own a house with my husband, and my sister lives with our parents. However, I am uncertain whether our parents own the property or are still making mortgage payments.

The mortgage agreement for my house prohibits using the property for business purposes, and I am unsure if this would include selling my handmade clay jewelry online. Although I have no intention of running a physical store, I would like to sell my products on a website.

In case the mortgage forbids us from setting up a website to sell my jewelry, my sister and I are considering selling her crafts on Etsy. However, we are unsure if this would violate my mortgage agreement as my sister would want me to handle the postage of her stuff.

I am surprised given that many people run their own businesses through Facebook groups, Etsy shops, and other online platforms.

 I assume that a lot of these individuals are bound by similar restrictions but still do this?

I would only sell small clay earrings, necklaces etc 

theoretica

Your mortgage will probable be fine with this. I suggest you are clear that this is a small craft business and not major pottery production with a large kiln

You may also want to consider/check your insurance.

DullGreyGuy

Most people are just blindly or comfortably breaching the terms of their mortgage/lease/rental agreement, invalidating their insurance etc. A small proportion will have made the necessary calls and either gotten permission or switch product to one that allows it. 

Unfortunately some do get unstuck, if you look at the Financial Ombudsman site you will find multiple claims that are likely to have been £100,000+ that were declined because the person had either said there was no business use or it was just clerical and upon investigation the insurer has discovered they were holding stock or raw materials or having business visitors etc. It was irrelevant to the claim but the CIDRA rules allow them to void the policy if they find evidence of deliberate or reckless false declaration. 

tightauldgit

I don't think your mortgage (or insurance) is going to have an issue with you setting up and running a website from home but the issue may come if you are holding inventory at home, or using the house to make things to sell. It probably also matters what the specific activities would be. If you are folding paper to make origami and selling it that's different than welding metal in your garage for example. 

MadRatters

Good news 😃

I spoke with the Mortgage people this morning who are fine with me setting up online stores as long as I don't change anything in the house, building work or have customers coming in. 

Even said I didn't need insurance since it's just handmade and not proper wholesale stock type of items. 

Bad news 😟

Husband kicked off and I can't do it from our house. 

He claims that because the contract does not state in full what activities are included under this clause, for him my telephone conversation with the mortgage people never happened and that I would be going against mortgage terms even though the  mortgage agent himself told me that ;

"From our point of view running a online business from home where there is no changes to the house or where you do not have customers coming into the property is fine and is not of any concern to your mortgage or for us. We do not see any issues relating to us about this type of business. The clause would only apply to you and us when you convert your garage into a nail salon for an example" 

And I did tell my husband this but still stands to a firm NO. 

DullGreyGuy

Sounds like you asked your mortgage company about your insurance? You'd need to speak to your insurers otherwise you're just asking a random person their opinion.

Brie

I'd be asking the mortgage people to confirm it in writing. Or would your husband still object?  And I would ask the insurance company to confirm as well as they might have issues with whatever processes you are actually doing in the home (having a kiln for instance, even if it's just for your own fun)

MadRatters

DullGreyGuy said:

Sounds like you asked your mortgage company about your insurance? You'd need to speak to your insurers otherwise you're just asking a random person their opinion.

No - I asked mortgage specific questions  

@Brie, still object as not in actual contract we were given in 2021. 

DullGreyGuy

MadRatters said:

DullGreyGuy said:

Sounds like you asked your mortgage company about your insurance? You'd need to speak to your insurers otherwise you're just asking a random person their opinion.

No - I asked mortgage specific questions  

@Brie, still object as not in actual contract we were given in 2021. 

ok just you said:

MadRatters said:

Even said I didn't need insurance since it's just handmade and not proper wholesale stock type of items. 

lincroft1710

Talking of insurance, if this does go ahead, it would be advisable to take out product liability insurance in respect of items you are making/selling.