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Ignatius Lord · 04-10-2012, 06:09 PM

I want to open a business bank account so I can start recording my income from business so that its nice and tidy separate from my personal account (currently people rent goes into my personal bank account!)

Michael Freer · 04-10-2012, 06:39 PM

(04-10-2012 06:09 PM)Ignatius Lord Wrote: I want to open a business bank account so I can start recording my income from business so that its nice and tidy separate from my personal account (currently people rent goes into my personal bank account!)

Why not simply open another personal account? I'd save you the costs associated with business banking and there no reason (I believe) to have one unless you want one or are operating as a registered company, rather than an individual.

Ignatius Lord · 04-10-2012, 06:47 PM

I have a registered company (LTD)so need one, the reason I created a company is so that my profits are recorded and that its easier to gain mortgages when I have some history of making money as a business (not just from a salary) as I hope to quite my job eventually so the banks would need 2 / 3 years history of making money from a business as they see it as more risky than being an employee

Michael Freer · 04-10-2012, 07:20 PM

So doesn't that make it tricky (as a Ltd company) applying for mortgages, although as you are focussing on the R2R strategy, I suppose it doesn't matter at the moment?

Sorry, going off topic, ignore me. Smile

Ignatius Lord · 04-10-2012, 07:45 PM

Im not sure but if you dont have a job (the end goal) how will you get any more mortgages? they need proof of income, if not from employment from 2 to 3 years of business accounts, so im trying to build my business acount history now

Daniel Booth · 04-10-2012, 09:42 PM

I have a Ltd company and out of the High Street names, I have found HSBC to be ahead by a country mile.

Mostly because you have a local business specialist who you can walk in and talk to and knows you by name, with lloyds I never even spoke to my "Relationship Mgr" just kept getting passed around call centres. Barclays slightly better but much the same.

HSBC Business Banking are superb in my book can't speak highly enough of the service I've received since switching.

Simon Allen · 05-10-2012, 08:37 AM

Mortgage lenders will not accept proof of income from a bank account. They may ask for statements to see evidence of account conduct.Proof of income for someone involved in property full time will be through SA302,tax returns,accounts and accountant's certificate.

Turning to best bank account.I would ask best for what?I deal with all the banks daily and do I have an overall favourite? No.I can deal with great managers in poor banks and bad mangers in good banks.

-If you are looking at cost alone then HSBC have a basic free banking offering
-If you are looking at best managers who understand business then HSBC & Barclays
-If you are looking at banks that understand property then Barclays & Lloyds
-If you want a local manager then HSBC & Barclays
-If you want a bank that is very different and should be everything you want then Metro Bank in London & South East

Remember that the bank is there to sell you financial services and they will restructure every 3-5 years which will be a reason to put you onto your fifth manager.Ask if their service centre is UK based and can you have a direct e mail and mobile number for your manager.

If you have an accountant ask them.They will get brownie points for an introduction to a local bank which may help your relationship with them.

Jonathan Clarke · 06-10-2012, 07:43 AM

I`m with Barclays Premier and can only speak about them as I`ve been with them for ever. I`d rate them as 9 out of 10
(I have to declare an interest though as my Dad was a bank manager with them)!
During my 35 years with them their banking service has remained consistently good, steady and stress free.

The `relationship manager` is available via e mail and mobile which is reassuring when things need untangling
Some have been hands on some more distant. They constantly change though so the relationship with the manager is sometimes more of a one night stand than an intimate affair. The best ones get promoted and move on and the not so good get shifted sideways. Though their mind is always willing its sometimes the volume of their caseload and client base which makes them falter. My recent one had 800 clients to deal with. Airtime is short and there is no time for small talk

I have a personal account for domestic stuff, another personal account for the properties and a business account for the sourcing properties.
All in all it runs smoothly and my online at a glance screen can tell me the state of play at any one time 24/7.

I`ve flirted with other banks occasionally but to date remain happy and loyal to Barclays.

( My Dad in any case would probably turn in his grave if i ever jumped ship!)

Northwest builder · 06-10-2012, 09:46 AM

Think it can almost totally depend on the 'relationship manager' allocated to you, I suppose personal local recommendation can help you with that.

They can't change lending policy, but a good manager will outline to you before you commit to things what will fit within the criteria.

I think the range of opinions above demonstrates it is shaped by the manager - I would personally say Lloyds were great, Barclays and Santander awful - but that is based on our experiences of dealing with the person we were allocated, others would probably say the opposite on the evidence of above.

TonyA · 08-10-2012, 01:36 PM

(04-10-2012 06:39 PM)michael_freer Wrote: Why not simply open another personal account? I'd save you the costs associated with business banking and there no reason (I believe) to have one unless you want one or are operating as a registered company, rather than an individual.

I agree: I've run my rental income and expenditure through a dedicated personal account for over ten years - you get all the services you'd expect and free banking, whereas after the first year which is usually free, a Business account quickly becomes expensive because they charge you for *everything*, bar cash withdrawals and electronic BACS transfers. Do you really want to pay £1 to the bank every time you pay the window cleaner with a cheque? Business accounts are really aimed at small businesses with employees and cashflow issues, but you should be able to run a rental business through a regular personal account.

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