How does a personal car lease affect a mortgage offer

ventrood

I have been looking into personal leasing a car and have a few questions about how this will affect me getting a mortgage. Currently I have £4500 on my credit car which is pretty close to the match. I was thinking about selling my car to pay off the credit card. Then leasing a car for about £300 a month. Im a first time home buyer

1) How does this effect the amount of money a bank will lend me for a mortgage.

2) I would like to get the highest amount of mortgage possible is leasing a better idea than getting a loan to buy a car.

toonfish

they will usually deduct £3600 from your salary as an existing committment, in the same way as they would with a loan repayment

ventrood

Why £3600 is that a standerd figure or would it be more if the lease was £400 a month?

herbiesjp

It is 12 times the monthly payment of £300 pm. They take off the annual lease payments from your income before applying any income multiples

ventrood

Ok so would it be better to to apply for a mortgage with £4500 on the card then lease the car once I have moved in?

danjberry

with a lot of lenders they will take 3% of the outstanding credit card balance as a monthly credit commitment which will be £1620 a year. so that figure will come off your annual salary

toonfish

ventrood wrote:

Ok so would it be better to to apply for a mortgage with £4500 on the card then lease the car once I have moved in?

quite possibly - it depends on the lender. There is one that will completely disregard credit card commitments, which always seemed a bit odd to me.