Building society keep asking for trading figures?

#1
I bought the pub next door to my house many years ago and took out a business mortgage to do so. Recently the building society have taken to asking to see the trading figures ie the annual accounts, do I have to provide this? I am not in arrears and am in fact overpaying?
 

sirbhp

LE
Book Reviewer
#2
I would deduce the following :
in the light of pub closures in the uk over the past few years they want to see if their loan is safe.
or they note you are overpaying and want to see if they can do more business with you by offering a loan ?
if you have bought the building as well as the business perhaps they want to see how much value is in the morgage .

Is it a requirement of the mortgage loan that you provide annual figures if required ?
good luck .
 
#3
I have had the pub for ten years now and haven’t had to provide figures in the past.
I am just reluctant to give info out to others , need to know and all that.
 

Gout Man

LE
Book Reviewer
#4
I have had the pub for ten years now and haven’t had to provide figures in the past.
I am just reluctant to give info out to others , need to know and all that.
Have you written a letter to them asking Them Why they want said figures?
Tell them their correspondence isn't clear and you are mearly asking why they want these figures, im sure they'll give you an answer, then if you are happy to divulge said figures fair enough. In the meantime if business is going smoothly and if you are not happy with their explanation then start looking around for another mortgage and take your business elsewhere.
 
#5
I doubt there is anything sinister involved. In your case how could there be?
On the surface it does appear rather invasive especially if no detailed reasons were tabled.
It may well be as simple as seeing your paper cash-worthiness/disposable income with a view to pension advice, further cash injections and lump sum investments or they could be doing some sort of general share-holder driven exercise in controlling "bad book" potentials....of which you are clearly not a threat but a potential bar graph stat to add to "good book"

Financial institutions are very market-aggressive these days. We at home are constantly inundated with "suggestions" of what they think we should be doing with our retirement lumps despite being told we are happy with our arrangements. They don't smile at me or SWMBO when we go in, they are smiling at SWMBO's wee bits of retirement & inheritance accounts like slavering wolves sniffing her wallets, plying her with credit card facilities with eye-watering 4 figure limits that she simply does not require. Would you believe she was grilled two years back over coffee as to her intentions to flog her recently deceased mother's house? Being of a quiet and very private disposition, she found it uncomfortable and an invasion of privacy so we know how you feel.

I do agree with others a few straight questions directly to them seeking non-fudged direct answers are in order.
I would cut through the counter staff and go directly to one of their Business Managers..."why me in particular or is this some some sort of general fact finding mission"?
Frankly, just as in a domestic mortgage, if you are servicing the loan as agreed or even exceeding expectations, in my opinion now you have their money on trust and you are systematically keeping your end of the bargain true, it's got damn all to do with them how cash rich or "comfortable" you are. It's a bit odd for sure.
In true ARRSE fashion, personally I'd tell them to politely go forth and multiply.
 
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#6
If it was me I'd read the small print on the mortgage and see what that says. If you signed up to provide details but they haven't asked so far then there's your answer.

And if you haven't signed up to provide the details, well, bin them or ask why, dependant on personal choice.
 

asr1

War Hero
#8
Don't provide them any information you don't have to.

There is no benefit to you for them knowing more about your business than the bare minimum required by your mortgage agreement.

Write them an a letter asking why they want to know, that's if you can't ignore their request.
 
#9
Its always possible that with your regular overpayments you've been flagged as a potential financial crime risk (money laundering) and so they've asked for your accounts just to make sure it looks legit. They can't tell you that's why they want the information as that could be classed as tipping off. Or it could be entirely non-sinister as suggested above.
 
#11
Thanks for the replies all, I will ignore them for a while and if they keep pushing I will ask them to explain. I thought it odd but you may be right, marketing or money laundering. I got a great deal when I took the mortgage out, 0.5% above base rate which was high at the time. As we have been at an all time low for 8 or 9 years now, it is hurting them, hence I have been overpaying as much as possible while the sun shines.
 
#12
Same for householders these past few years, interest-only mortgage but endowment life insurance will easily cover it. Write to them explaining, get exactly the same letter next month. Go in the branch and explain, sympathetic staff apologise along the lines of "the people who sent it haven't a clue, they just send letters".
 
#13
Tell them that if they want to see the accounts then they can go to companies house and purchase them. Only costs £6 IIRC. But they only get the abbreviated accounts or whatever they're called now.
 

AfghanAndy

On ROPS
On ROPs
#14
I have had the pub for ten years now and haven’t had to provide figures in the past.
I am just reluctant to give info out to others , need to know and all that.
Possibly it may be to check if any money laundering is going on. Just a thought.
 
#15
Ask them why they want to see them & check your agreement's small print to see if you actually have to.
If you signed an agreement where they're entitled to see the books then comply. If not, ignore them or refuse - politely.
 
#16
Thanks for the replies all, I will ignore them for a while and if they keep pushing I will ask them to explain. I thought it odd but you may be right, marketing or money laundering. I got a great deal when I took the mortgage out, 0.5% above base rate which was high at the time. As we have been at an all time low for 8 or 9 years now, it is hurting them, hence I have been overpaying as much as possible while the sun shines.
Don't ignore them.

They'll think you have something to hide.

Ask them in a very calm manner why they want to see the accounts.
 
#17
Tell them that if they want to see the accounts then they can go to companies house and purchase them. Only costs £6 IIRC. But they only get the abbreviated accounts or whatever they're called now.
Sole traders don't file at Companies House. And LLP accounts show zip.
 

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