going into business (finance questions!!!)

**Derry** · 02-09-2008

Hi,

not sure where was the best place to post this so i stuck it in here...

As you may know i'm booked in at NETT to do course in december and january and am hoping to set up on my own early next year.

However, my mortgage is on a 2 year fixed rate which is up for renewal in september next year. Basically, will going into business affect my chances of renewing or not?
A few people have said that they need to see 3 years worth of accounts otherwise they won't take the risk.

Just wondered what other people did in this situation and/or if there is anyone with a good financial head (grumpy?!) who could advise me.

I think i'll give my mortgare people a ring anyway but just wanted a heads up first so i don't get screwed and so i know what i'm talking about!

much appreciated

Patrick

Sully · 02-09-2008

Talk with your lender Patrick - as a general rule when a fixed rate ends, the lender will offer you their latest fixed rate deals or a variable and you decide which one to go for. They don't check you out as such provided you've maintained payments. However, if you were switching, they would certainly want to see proof of income. That said, the goalposts have moved in the last 12 months and you really should talk with your lender or a broker if you use one. You might get lots of Opinions on the Forum but I'd be wanting Facts if I were you just to be sure............. unless of course we have a part-time banker on here

?

Andrew

**Derry** · 02-09-2008

thanks Andrew,
I will make sure i contact them as well just so i don't end up in the mire but its good to get people's opinions as well.

I hope that the mortgage hasn't gone up any more either but thats another complaint alltogether!!

**enduro** · 02-09-2008

Grumpygrouter might be able to give you some info, as he is an accountant.

**LM Ceramics** · 02-09-2008

if thats the case i would only tile part time to begin with last thing you want to do is fall behind on your mortgage do the course first and see if tiling is for you then dry and drum up some business first its a bad time to set up in business now

**grumpygrouter** · 02-09-2008

Originally Posted by Derry

Hi,

not sure where was the best place to post this so i stuck it in here...

As you may know i'm booked in at NETT to do course in december and january and am hoping to set up on my own early next year.

However, my mortgage is on a 2 year fixed rate which is up for renewal in september next year. Basically, will going into business affect my chances of renewing or not?
A few people have said that they need to see 3 years worth of accounts otherwise they won't take the risk.

Just wondered what other people did in this situation and/or if there is anyone with a good financial head (grumpy?!) who could advise me.

I think i'll give my mortgare people a ring anyway but just wanted a heads up first so i don't get screwed and so i know what i'm talking about!

much appreciated

Patrick

Hi Derry, sorry I am not going to be much use to you in this question. You are better to speak to your mortgage people regarding their requirements for information.

Normally with a new application, the finance company would normally ask for "certified" accounts for at least 2 years. If you don't have certified accounts, they will then normally accept a Tax Office statement and computation showing "profit for tax purposes" for at least 2 years. if you are jsut carrying on with your mortgage after the fixed rate period, it is normal to revert to their "standard variable rate" and just carry on paying the revised amount. No check of income is normally asked for as far as I am aware.