car finance and mortgages

loopyloz_uk

Hi there,

I think i may have an unusual situation which i would love some advise on.

I am a home owner, in the process of going through a remortgage (woolwich). The mortgage application has been recieved and we are awaiting a valuation. this is all fine, accept in my eagerness to get in on the government scrappage scheme before it runs out at the end of Sept 09, i rushed out on the weekend and signed up for a nice shiney new car.

the finance on this has been accepted, and i need to go and sign the papers. but before i finally commit myself i wanted to know if this would hinder/stop my remortgage application???

the remortgage is for 78k. the car finance is for 10k. the remortgage is a joint application with about 25k per annum earnings between us 2, before tax.


help! i really dont want to loose the car or the house! any help is really appreciated.

opinions4u

This is a material fact which you should disclose to Woolwich.

It may affect their affordability calculation meaning that they could reduce the amount that they are prepared to lend you.

But if you don't disclose it and they carry out a credit check prior to completing your remortgage they would probably withdraw any offer.

would they still withdraw it, even though i filled in the mortgage application and signed the forms before i even contemplated a new car? the car (and finance) was only done AFTER the application?

My answer above still applies. I use the words "could" and "probably". Nothing is certain, but non-disclosure is one hell of a risk and could be considered fraudulent.

loopyloz_uk

would they still withdraw it, even though i filled in the mortgage application and signed the forms before i even contemplated a new car? the car (and finance) was only done AFTER the application?

Mrs_Bumble

If they credit search you now and find undisclosed credit committments at best they will query at worst they will reject.

The car loan affects affordability which is an FSA key issue and so they can't be seen to be not doing their job.

You need to speak to them, yes they most definitely would withdraw if they think you havent been open with them. obtaining credit after a mortgage application can look dodgy.

for affordability purposes whatever you have agreed on the car loan XYZ per month X 12 = zYX deducts from annual income. If it affects affordabilty then bye bye something

koexelek

The crazy thing is.... AFTER the mortgage has started, you could take out car finance of £1000 per month if you wanted to :eek: