Will this have an adverse affect on my mortgage application?

barrowvian

Hi all,

I'm in the later stages of buying a house ... e.g. I'm just waiting to receive the paperwork from the solicitors now that their solicitor > solicitor enquirers are complete. I haven't yet paid the deposit, but this should be done this week.

Anyway, my 2 year car lease options is also coming to an end at which point I either give the car back (that would leave me with no car at all) or I can take the finance and pay the car off over X amount of payments. I don't really fancy the hassle at the moment of changing cars and I really cannot do without a car at all. The finance is 4.9% APR which is doable.

My question is though ... by taking the finance on the car, can this have a knock-on affect on my mortgage application? I know they've already offered me the mortgage etc and I've accepted it, but because the mortgage deal isn't 100% finished could the new finance cause me any problems?

Thank you.

ACG

Your affordability would be taken into account.

If they do another credit check and see the credit commitment there or if you inform them then they will do another affordability check and decide whether to lend you the money or not.

How much is your income? How much would the finance be? How much is the mortgage?
Whats your credit score like?

barrowvian

My credit score is almost perfect, I have one missed payment from 2 or 3 years ago.

Income is £48k and borrowing £153k for the mortgage, having stumped up £38k for deposit. The finance would be £10,121.

What is the likelihood at this stage that they'll do another credit check?

ACG

It will depend on the lender but i dont know which lenders are more or less likely to re-check. Im going to sit on the fence and say 50/50 so its one of those you take the risk if you do it.

To be honest, it does seem to fit - but work out what the repayments would be and call them up. Ask if you were to add car finance on to your expenditure for £xxx a month, would it still fit.

You then have your answer.

If they have a calculator online give that a try... but i tend tot ake those with a pinch of salt.

barrowvian

Ah I didn't think of the monthly repayments. The finance would literally be £9.48 per month more than what I am paying already for the lease so it is definitely affordable.

I think it might be worth giving my mortgage adviser a quick call tomorrow and see what he says and look at it, theoretically. If worse comes to worse I can make do for a couple of weeks; it's just not ideal.

Thank you very much for the info ACG I really appreciate it.