Advice need on getting mortgage and possibly setting up a business.

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Ninga2012

Guest
Hi, I'm a first time user of this forum and have found other threads to be very useful so hopefully someone can help me with my questions and apologies in advance i do have a few!

I have been offered redundancy with work which i am happy to take as i was planning to relocate from Dublin to my birthplace anyway within the next 12 months and this is just making me do it sooner. (It will not be happening until December 12 / January 13)

Its all very up in the air at the minute and i have made no definite decisions but I have a few options open to me and i would like any advise anyone may have:

1.I am thinking about buying a local shop (good yearly turnover) in the area im relocating too, it is also a house so my plan would be to live there too. Excuse my ignorance but my main question is will the bank give me a loan to buy a business without having an actual job, i would like to think that the shop would be my source of income or should i look for a mortgage now before my redundancy comes through and while i have a permanent job?

2. Or get a new Job,but i would still need somewhere to live so should i apply for a mortgage before i leave this permanent job as it could take a while to get another permanent role and so i would have no hope of securing a mortgage. My redundancy money would keep me including mortgage repayments going for over a year once i'm careful.

Also just to note, I have no dependencies, its just me!

Thanks
Ninga
 
The banks require a letter from your employer stating that the job is permanent and secure so I'm pretty sure that they'd rule out based on the upcoming redundancy.
 
Unfortunately as Ryaner said, your bank will look for a letter from your employer stating that you have a full time, permanent, secure job etc. Your upcoming redundancy would rule you out for most mortgages. In reality, you are probably better off not taking on a mortgage if you are likely to be made redundant, it'd put alot of pressure on you to find a new job.

It might be better to approach the banks for a business loan in order to buy the shop.
I'm not sure what you'd need to apply for such a loan. I guess you'd probably need to produce a valid business plan etc.
If I was in your boat I would use the time between now and year end to investigate this option. For example, you could speak to the bank to ask them about their criteria for business lending, you could enroll in a course on starting your own business etc. You could look for part time work in a shop to see if you'd like it and learn the ropes etc.
For me, looking for a business loan seems like your only option.

Good luck with it.
 
Thanks for your replies guys, to be honest i am gearing more and more towards the shop. I worked in a family one all through my teenage years so have a little understanding of whats involved in running your own business. Thats a good idea though doing a course on running my own business, i will certainly give it some thought. Thanks again
 
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