Wrong timing to get a car PCP if remortgaging soon??

cici71

Hi. After Xmas, I'm going to sell my home and downsize. My credit file is good in the fact all my cards etc are all written as 'up to date' on my file with no issues. However, I do have a fair amount of borrowing. I've been reassured that doing a remortgage won't be an issue as I will have a huge deposit with 60% LTV and then requesting a far less mortgage than what I'm on now.
My question is .... Will getting a car on PCP finance affect my file like loan would? If I got a loan, that amount would be showing as owing however PCP finance is rather like renting. My old car of 8 yrs is pretty much kaput and a new one would on PCP would be more cost effective for me but I do not want to jeopardise remortgaging. Any advice gratefully welcomed .... But be nice 😉

pete-20-11

I'd do mortgage first, then sort out the car.

The mortgage advisor / company are likely to take the monthly payment into account when working out your affordability. It might be okay, difficult to tell without knowing further details on pay and regular expenditure.

ACG

The monthly commitment would be put down as an expense. That would then be included in the affordability assessment.

cici71

Thank you yes - the commitment would be noted rather than it being on my file. Really useful info.
Thing is .... When I sell my house, I'm paying off my debts which drastically reduces my outgoings plus the equity is also enabling me to have large deposit. When I'm remortgaging, will they take my NEW outgoings as that's what the true reflection will be (which is why I know I can afford the car!) rather than thinking I've still got all these outgoings which will disappear on completion ??

ACG

It will show the debt outstanding - but down worry about that too much. You just explain its pcp and you hand it back.

pete-20-11

They might not believe you will pay it back...

cici71

So knowing a bit more - would you say I should or shouldn't get a new car using PCP ?

amnblog

Why the urgency?


Sort the new home out first.

Penelopa.Pitstop

cici71 wrote: »

So knowing a bit more - would you say I should or shouldn't get a new car using PCP ?

Depends on the cost of the car and your affordability.

If you take PCP, the whole amount of credit (value of the car minus your deposit) will be recorded on your credit file. It doesn't matter if you're going to pay only for 2-3-4 years and hand the car back without paying the balloon rate at the end.