A prisoner within your own home

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A prisoner within your own home

By Jamie Lester, Head of Haus Properties

This blog is written for all the entrepreneurs and aspiring homeowners, home movers and equity releasers...good luck.

Over the last month, I have been talking to likeminded entrepreneurs and there is one thing we all have in common; we haven’t moved home. So I started to dig a little deeper and what I am starting to see is very, very ugly.

At the moment, the headlines are full of inspiring stories about how entrepreneurs will make Britain great again, how small businesses account to up to 37% of the economy and how YOU can make a difference. We can, and I am one of them. At the age of 24, I quit my job and started my own company. Fast forward eight years to 2012, and although it has been very tough, I am still self -employed and I am still trying to make a difference. What no one is telling you is that if you take this leap of faith, you’d better be damn good at it (I’m talking Bill Gates good!) because at the moment, and for the next 3-5 years, no one will lend you money to get onto the property ladder. Not only that, if you are a home owner (congratulations!), no one will let you release equity to improve it or allow you to move home (as this starts a whole new mortgage application process).

Banks are currently finding any opportunity not to lend (despite the headlines you read). Banks are asking for 3 years proof of accounts from a young company - in my opinion this is just an antidote to reject these applications. The applicant may have excellent credit, a proven track record to keep all their finances under control, but without 3 years accounts – you can forget it.

Now let’s fast forward three years when the company is starting to find its feet; what do you think these accounts are going to show? If the business had any money invested into it, or reinvested to grow and develop - probably not much….so where will we be then?

Brave entrepreneurs seem to be in a relentless vicious circle and the banks are to blame. We are encouraged to do our own thing, but the very people who are encouraging us are now essentially trapping us. As time ticks on and entrepreneurs grow their businesses, circumstances will change. People will marry and divorce, some others will die, and babies will be born. These are just some of the reasons why people have to move, but with the current system, they are chastised and will become prisoners within their own home.

 

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