I want to start my own taxi firm. Can I get a remortgage for this?

Posted on 17 November 2013 by Jane


I want to start my own taxi firm. Can I get a remortgage for this?

I own my home outright and want to start up my own taxi business. I need 2 cars to start and wondered if I can remortgage my home in order to buy the cars and start the business? I have never had a mortgage.

Jane,

Unfortunately, this isn't going to be a straight forward case as many lenders are cautious about securing loans for business purposes against a borrowers main rseidence, especially where they are starting up a brand new business.

Mainly their concerns will centre around how you would be able to pay the mortgage in the event the business isn't as sucessful as you hope it will. No lender wants to have to reposess a property and therefore they need to to extreme care in this type of scenario. If you have a sound business plan, have some reserves to fall back and if the loan to value isn't too high then it is a possibility. Also a lender may view the case more sympathetically if you had someone who could act as a guarantor for you.

If you'd like to talk your case through in more detail, then please let me know, and I'll arrange for you to talk to one of our consultants.

Regards,

Simon

simon.collins@johncharcol.co.uk

More than mortgages, talk to me about:
Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance
General Insurance | Valuations | Conveyancing | Wills | Home finders

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.