Car finance and mortgage.

SBeswick

Afternoon, I'm new to the forum so apologise if this is in the wrong place!

Anyway the question is, me and my partner are looking to get a mortgage around 2016, sooner if possible!
I would like a new car too, I know we can afford mortgage, bills and a car between us.
When the time comes to getting a new car is it best to get finance on the car, or get a loan out to cover the cost?
What would be the best route if we are looking at getting a mortgage?
Does it matter what type of credit is used on the mortgage application?

Thanks in advance

kingstreet

It doesn't matter.

The monthly payment will determine how much less you can borrow.

SBeswick

Thanks for your reply!

So just as a theory if the repayments are smaller is there a greater chance of borrowing more?

kingstreet

Yes, that would be a reasonable conclusion.

Try putting your details in a lender's online calculator. Input a credit agreement for £300. See what the affordable mortgage amount would be.

Change it to £200. What's the output now?

There's the difference in a £100 a month credit commitment on affordability.

SBeswick

Thanks kingstreet!

I wi have a look into this with more detail on the mortgage calculators!

Thanks again !