Mortgage with other debts

leereni

Just wondering.

I am almost out of debt, however I am sick and tired of using public transport and was thinking of taking a hire purchase loan for a vehicle to get me to work and back.

I am sure this will be taken into account when applying for a first time buyers mortgage, however how much will this affect my application if I'm shown as owing 2000-3000 pound costing me 100 pound a month?

Thanks

hcb42

it is just taken into account when assessing affordability. It isnt a big drama. Many applicants have car loans

powerwin

If you are on a tight budget though that's another £100 that can't go on your mortgage. I guess it depends how tight your mortgage affordability is going to be.

Rgds

leereni

I'm not on a tight budget but point taken about extra £100 that won't go on a mortgage. Will have to do more overtime....

leereni

I have more of a problem with my credit file which means I'll need more of a deposit...

jamesd

It's just £100 a month less money that you can afford. Not a huge deal but will reduce the amount of mortgage that you can get. If you can stand it, better to get the mortgage first, then the vehicle. If it's doable reasonably soon, anyway.

You're likely to find that using your own vehicle is more expensive than public transport and could delay your ability to save the required deposit amount.

Joe_Bloggs

@omcornwall.
If you are almost out of debt then why not try seeing how much you can save towards a deposit. Thus you will have some idea of how long and arduous the process is.

I have always found that cars are a potential bottomless money pit, creating uncertainty in the budgeting for everything else you plan to do.

J_B.