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Will a car loan affect remortgaging in 01/08
ccygirl
Posts: 128 Forumite
Hi I need to buy a new car this year as my old one is nearly clapped out. I need to borrow about £9K. Will this affect our mortgage we are on a fixed rate till 01/08 when we will need to find a new deal as we will have £155K outstanding with 23 years left. We do have about £12k in a PEP but would like to leave it there as we see it as our emergency fund. We dont really have any other debts. Will it cause difficulty in getting a good rate or will we need to consolidate it into the new mortgage?
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Comments
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If you look to move to a new lender, they will have to make a deduction from your gross salary to take into accoun the new car loan.
So if you car loan payments were £100 pm they would need to multiply it by 12 to get a yearly loan payment figure, so £1200
They would then deduct £1200 from your income before applying income multiples to agree the mortgage amount for you
HTHI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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