Non UK spouse mortgage

Monty1978

Hello all. 

I run a small but successful business that was incorporated Feb 2020 but has been functioning for 10+ years prior as sole trader status and is solvent. My wife works from home and gets paid commission from abroad into a UK account. Payslips are provided and this year she will be doing her first tax return. 

My business turns over approx 250k per annum and is set this year to turn over 300- 350k to make a profit of approx 70 - 110k along with my salary. As we went limited fairly recently a lot of investment was put in and I currently pay myself a salary of 12k with meagre profit due to spending roughly 50k on equipment. 

We are trying to obtain a mortgage for the other 50% of my fathers house and we will effectively act as guarantor for this so we can build a dormer extension on the roof. He owns 50% and 50% is housing association owned and they have agreed to sell it to him/ us. 

The problem we have is my books for this financial year are not showing much profit and that she is living in the UK on a spouse visa. Her earnings fluctuate from around 2500 to £3500 a month and the mortgage we need to guarantee is approx. £140,000 which will obviously have a 50% deposit on the total cost of the house being £280,000 approx. 

This is very frustrating as we don't want to rent due to well not wanting to pay someone else's mortgage. It's difficult due to our dog and acting as guarantor for my father will remove his rental costs on the other half of the property so it makes sense in many ways to do what we have planned. 

Any ideas on how to progress forward, and fast, would be greatly appreciated. We can't wait another year due to our child being able to crawl and then walk quite imminently. There is not enough room. 

Thanks in advance. 

K_S

@monty1978 There quite a few things to unpick here. To start with -

1. What exactly are you trying to buy? Are you trying to get a mortgage to staircase the property your father lives in from 50% to 100% ownership?

2. Do you intend to live in the above property or do you just want to be "guarantors" on the mortgage for affordability purposes?

3. The wife being on a spouse visa is (by itself) unlikely to be an issue. However, it looks like 100% of your wife's income comes from overseas which will restrict the number of lenders willing to consider. Which currency does the salary originate in?

4. For the last 2 approved accounts, what's the average net profit for the company and average salary drawn by yourself? 

Monty1978

K_S said:

@monty1978 There quite a few things to unpick here. To start with -

1. What exactly are you trying to buy? Are you trying to get a mortgage to staircase the property your father lives in from 50% to 100% ownership?

2. Do you intend to live in the above property or do you just want to be "guarantors" on the mortgage for affordability purposes?

3. The wife being on a spouse visa is (by itself) unlikely to be an issue. However, it looks like 100% of your wife's income comes from overseas which will restrict the number of lenders willing to consider. Which currency does the salary originate in?

4. For the last 2 approved accounts, what's the average net profit for the company and average salary drawn by yourself? 

Thanks for your reply. 
1- Yes we are trying to staircase the property to 100% ownership
2- Yes for a period of time we intend to live in the property and develop it to a small degree
3- 100% of my wife's income comes from Hongkong 
4- There is not 2 years of accounts. The company was converted from sole trader status to private ltd in Feb 2020. This first year I just about managed to pay myself 12k salary with approx 5k in profit. Around £50k was spent on machines, tools, web development etc though which would have been the profit had it not been spent as it was all not 100% essential. (I appreciate future potential profit is of little benefit to the here and now)