FTB - Mortgage Application - Car loan not in my name

Mukk2k3

Hi Guys,

Need some advice. Myself and OT have just had an offer on a house accepted. I rang up the building society this evening to progress with the mortgage and they went through the affordability check with me based on salary and monthly outgoings etc.

However after going through the affordability check we have found out that we cannot borrow the amount that we need. I told the women during the process that I have a car loan which I pay £250 a month for which they have included as part of the calculation - however I pay this directly into my parents bank account as the loan is in their name as I couldnt get a loan at the time I bought the car.

As can can't afford to borrow the amount we need do you think I can ring them back and tell them that after speaking to my parents they are willing to pay off the rest of the car for me to assist me in getting the mortgage? As when I take this amount off we easily pass the affordability check.

Do you think this will be OK?

Any other suggestions would be greatly appreciated.

Annisele

Mukk2k3 wrote: »

As can can't afford to borrow the amount we need do you think I can ring them back and tell them that after speaking to my parents they are willing to pay off the rest of the car for me to assist me in getting the mortgage? As when I take this amount off we easily pass the affordability check.

Assuming that's true, and your parents are genuinely going to repay the car loan for you, then there's no problem. (Though the building society may not believe such a convenient story, and may want some proof that your parents really have gifted you the money).

If it's not true, then another word for the suggestion might be "fraud".

Mukk2k3

Well it's not really gifting me the money because the car loan is not attached to men anyway. But I will cancel the standing order to my parents account and they are willing to put into writing that they will be paying the rest of the loan.

So I am hoping this will be OK.

poppysarah

Mukk2k3 wrote: »

However after going through the affordability check we have found out that we cannot borrow the amount that we need. I told the women during the process that I have a car loan which I pay £250 a month for which they have included as part of the calculation - however I pay this directly into my parents bank account as the loan is in their name as I couldnt get a loan at the time I bought the car.

As can can't afford to borrow the amount we need do you think I can ring them back and tell them that after speaking to my parents they are willing to pay off the rest of the car for me to assist me in getting the mortgage? As when I take this amount off we easily pass the affordability check.

Do you think this will be OK?

Any other suggestions would be greatly appreciated.

Continue to pay off the car loan.

How long have you been paying it for?

If your credit situation has improved enough to get a mortgage now (or not!) then you should remove this debt burden from your parents.

I am of course assuming you are over 18 and wanting to stand on your own two feet financially as an adult.

Having not been able to get a loan for a car, you borrow from your parents. When you are unable to get a mortgage you appear to want to shirk this debt too.

Please take seriously DEBT. It's a monstrous thing.

Even if your parents can afford to pay off the loan for you, you should show them some respect and pay it off yourself.

If you can't and this means you can't get a mortgage at the moment then this is actually probably a good thing.

My advice:

Clear your car debt.
Save like crazy.
When you have plenty of cash in the bank apply again for a mortgage and you will find you are much more likely to get one.