Mortgage Application affected by car finance?

soapstar88

Hi,

Im currently in the middle of offering on a property and need hep understanding something which the bank doesn't seem to have an answer to!

Basically I have been given a DIP by my bank, great stuff! However this DIP was approved even though i have outstanding car finance (which ends in September). I asked the mortgage adviser if I should just pay off this remaining balance (£1700) or leave it incase it affected my application. They did a quick check and removed the finance from my DIP to which it made no difference to the amount i could borrow. However he did say that there is always a chance when applying this finance could be used against me?! Why one earth is it ok to get a DIP with but could potentially effect my actual mortgage application!

I need advise on whether I should just pay this off or leave it. Currently an offer is on the table and we should know today, if this offer is accepted I will have spare to pay it off immediately, if they want a little more (2-3k) then i would be pushing it to pay it off. What should I do!

Thanks!

ACG

As it has less than a year to run some lenders will ignore it.
If it is an issue, you can always offer to pay it off prior to completion - that should then overcome the issue?

soapstar88

Thanks ACG - I guess i should hold off then. I jsut dont want anything to hinder the application as we are under the assumption that we have no chain and can move quickly!