Trying to sell and car has gone kaput!

[Deleted User]

Basically, we need a loan to buy a decent family car that won't break down like the car I have just spent a fortune on and now don't even feel safe to drive (an old corsa) hubby and I have just paid off two loans and are left with one between us, no other debts.

The only option for us is to get another loan but I'm wondering will this go against us on a mortgage application, I've done all the 'how much can I borrow' calculations and with a new loan we can still get what we need. Also, will the bank think I've had this loan as a way of getting more of a deposit, even though most the deposit we will need to move will be coming from the sale of the flat and we also have savings which will obviously have an audit trail, so if I show them car documents and receipts then I can prove this loan was for a car and not towards a house deposit?

[Deleted User]

Ah well. Night then!

ACG

There isnt enough info to give a proper reply but in my opinion, having as few debts as possible is better. Applying for a loan just before a mortgage isnt a great idea neither is applying for it until you have completed.

Having said that, if you NEED a car, then you need it so you have to do whats best. Can you not buy a cheap run around for the sake of a month or 2?

Rebecca01

What would be your time difference between applying for a loan and then a mortgage?

ACG

I dont really want to answer that, i would need to know a lot more info and for me to give an answer is unfair. You could get a loan tomorrow and a mortgage the next day or you may have to wait 6-12 months - it all comes down to your credit history and affordability and the case as a whole.

StuC75

Assuming theres a good couple of months - and ability to prove that the Loan wasnt for using towards the deposit (very much frowned upon).. Look realistically at affordability - what amount of earnings would be used by mortgage \ bills & credit commitments.. The more disposable at the end the better..

jimjames

How much are you planning on borrowing for the car? Presumably if it could be seen as a deposit then it is a pretty substantial amount which raises the question, why do you need to borrow so much?

You can get very reliable cars for not much money if you check them out and choose the right model. £3k VW Golf bought at 140k miles has just passed 190k with no work other than standard servicing.

[Deleted User]

I would just like a car that will last me at least 5 years. I will wait until September as if my flat is not sold then we will probably take it off the market until next March/April where we can properly afford to drop the price and lose out just to get us out of here!