Applying for a mortgage soon

gb-ww

Hi Guys
I will be applying for a mortgage soon, hopefully within the next three months or so. I earn a good salary and have a deposit saved so not too worried about that.

I am going to check my credit files to make sure there is nothing hidden there but there is no reason for there to be.

I have a car loan that is just over half way through its 48 month period. I have enough saved to enable me to pay off the loan in full now and still leave enough for the deposit. Obviously lenders will be able to offer me a higher mortgage amount if i do this. However my question is, if I spoke to a mortgage adviser in a bank, would the evidence that I had the money saved and would be able to pay off the loan if necessary be enough for them to offer to lend the higher amount anyway? Then I would be able to pay off over the normal period (it is 0%) from my savings, whilst keeping myself a buffer once I had bought a house.

I think my preference would be to just pay it off and get it out of the way but just wondered what people's advice would be?

hostie1985

hi gb-ww,

the bank may lend you slightly less if you still have a loan to pay - If i was you, i would pay off the loan before getting the mortgage as i would feel better going into buying a house and knowing that i have no other debt to worry about

hostie

xx

Fairdo_2

Hi

Unless there is confirmation that it is paid off, they would not assume it is paid off when they advance you the money.

If you say it would be paid off, that would be a condition of your mortgage that you have to and your Solicitor would need to confirm this has been done.

It is up to you how you go about this, but if it is at 0%, I would consider keeping it going as you won't get a cheaper rate!