Self Employed Mortgage new company possible?

experience

My fiancee may get a mortgage with her dad next year, she has £40k deposit and she runs her own company which is in its 1st year of trading with a projected net profit of £15k, his income is around £20k and he's been with his workplace for around 20 years.

I have a small Ltd company with 3 yrs of accounts which i run on the side with a net profit of approx £15k per year. In order to help her financials for her mortgage i could transfer my company into her name so she owns 100% of it, however would she be able to use it as an income for mortgage purposes? The company would have 3 years accounts however she would only have been director of the company for approx 5 months.

Ideally she would be looking for a mortgage of around £150k-£180k if possible

I don't want to transfer my company into her name unless it would help her mortgage, as by transferring it would cost me £1500 in additional tax.

ACG

Thats mortgage fraud! Thats not even bordering on or bending the rules a little bit.

As a broker i would not touch this with a barge pole. As a consumer i would advise you to think very carefully before doing it - not just tax (income and capital gains) but also if it were to get found out you could find yourself on the naughty list struggling to get a mortgage forever more.

Why are you not getting a property jointly?

Dads age could be a factor as would any other mortgages he is on. The incomes of £15k and £20k would be a stretch to get £150k and £180 probably bordering on impossible.

It might be worth sitting down with a broker running through the options and seeing what can be done properly and if that does not fit in, what needs to be done for you to get there.

experience

Thanks for the reply, i didn't think it would be would be mortgage fraud?

Its a legitimate registered Ltd company, businesses are bought and sold daily - i would be legally transferring my business to her through the proper channels i.e. company house, hmrc, accountants etc.. so it would all be above board.

I have a large default on my credit file which wont be off my credit file for another 2 years so was thinking of the best way for her to get a house legally.

The other option i was wondering was if a buy to let would be possible using the £40k as a 25% deposit?

Any advise would be greatly appreciated

ACG

Your inflating someones income with the intention of obtaining a mortgage.
Would you be living in the BTL? If so, again its mortgage Fraud. A default on its on is not the end of the world.

Lets do this from the beginning....

What do you want to achieve? Is it a residential property for you and your girlfriend to live in?
How much do you want the purchase price to be?
What do your accounts show for the last 3 years approx?
What do you expect your partners wage to be?
How much is your default for?
What was it from?
When was it registered?
Has it been satisfied? If so, when?

We can then look at whether you can do this legitimately and the best way for it.