Opening a business account

[chris316]

Hi, I'm looking to get a bit more serious with this and do the rest of my properties in a limited company. I've set the company up, found my next property and had an offer accepted. I've applied for a business account with Starling, they require a mortgage offer in principle and my broker requires proof of a business account to start looking for mortgages, any ideas what to do? 

Cheers 

[Stuart Phillips]

3 minutes ago, chris316 said:

mortgage offer in principle

Reading the starling website it appears that whats required is a Decision in Principle, not an actual mortgage offer. So you dont need any account details for that, they just source an SPV mortgage for you, and do the credit check and then send on the docs to Starling.

Even then, to make an application you only need a bank sort code and account number, which you often get before the account is fully active anyway. Your broker probably works for a Network who have some over zealous compliance requirements. Ive certainly never needed proof of a bank account before application, just a sort code and account number for the application form and the underwriters might ask for an initial bank statement during the application. You can also easily get a decsion in principle without a property offer too. Sounds like the broker doesent do much SPV stuff and is a bit confused.

[chris316]

I'm seeing a different broker on Monday, hopefully they'll be more clued up. 

[tbrown04]

No doubt, a mortgage lender will look at any depository accounts on your bank statements —including financial records, investment accounts, and any open credit extensions. Assuming you've begun a business inside the last little while, it will be more hard to get an advance since you will not have the option to exhibit pay solidness according to the credit officials.

[Stuart Phillips]

On 4/2/2022 at 8:57 AM, tbrown04 said:

No doubt, a mortgage lender will look at any depository accounts on your bank statements —including financial records, investment accounts, and any open credit extensions. Assuming you've begun a business inside the last little while, it will be more hard to get an advance since you will not have the option to exhibit pay solidness according to the credit officials.

Actually BTL lenders prefer a new clean SPV limited company with zero trading. The less activity the easier it is to manage fraud, money laundering etc.

You give personal guarantees anyway, so there's actually no limited liability at all as far as mortgage debts go. Probably harder to get a business credit card than a mortgage!