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Car loan affecting mortgage
sparkly_sun
Posts: 52 Forumite
Hi all,
I have a hire purchase loan on a Citroen DS3 that comes to an end in September. I'm looking to take out a mortgage through my bank in a few months time who will give me a good sum if I givemy car back at the end of its term in the autumn. If I don't then it affects my mortgage borrowing quite significantly. I like having a good car but in the schem of things I'd rather have a good house.
However, Citroen phoned me up last week trying to sell me a new car with lower monthly payments. I declined at first because I want to get a decent mortgage but they believe that it's possible to transfer the finance to someone else and therefore not have a hire purchase sat on my credit file. Can anyone see a problem with this or can I truely have the best of both worlds? I'm concerned that if I say yes, get a new agreement for the car and then apply for a mortgage I'll somehow still come a cropper.
I have a hire purchase loan on a Citroen DS3 that comes to an end in September. I'm looking to take out a mortgage through my bank in a few months time who will give me a good sum if I givemy car back at the end of its term in the autumn. If I don't then it affects my mortgage borrowing quite significantly. I like having a good car but in the schem of things I'd rather have a good house.
However, Citroen phoned me up last week trying to sell me a new car with lower monthly payments. I declined at first because I want to get a decent mortgage but they believe that it's possible to transfer the finance to someone else and therefore not have a hire purchase sat on my credit file. Can anyone see a problem with this or can I truely have the best of both worlds? I'm concerned that if I say yes, get a new agreement for the car and then apply for a mortgage I'll somehow still come a cropper.
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Comments
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What happens to the other person if you stop paying?0
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Sounds like fraud to me
Some salesmen will try anything to get a sale
If you're paying the credit agreement it will be listed on your credit file. If it's in anyone else's name then they have to pay it.Changing the world, one sarcastic comment at a time.0 -
What happens to the other person if you stop paying?
It would most likely be my mum, and her wrath is not something to be met
I wouldn't stop paying.
Thought I could pay the money personally to her account and she could then pay finance company from hers.
It does sound all worryingly quite fraudulent.....0 -
Wouldnt that just mean you had a debt to your mum which exactly matched the terms of the car lease?
Would still need to be declared as a loan, and it would be picked up by any underwriter that looks at your bank statements.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I've slept on it and I've decided I'm not going to do it - it all makes me feel a bit uneasy!0
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Have I missed something?
If your loan is ending in the Autumn it should not affect your mortgage lending.
Don't take a new car yet - problem solved.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Have I missed something?
If your loan is ending in the Autumn it should not affect your mortgage lending.
Don't take a new car yet - problem solved.
No No No,
you are simplifying this farrrrrrr to much. It is always better to cook up some convoluted (and possibly illegal) financial shenanigans rather than just be straightforward and honest.
God you brokers are useless!! You will be telling me that i have to declare my bankruptcy and my three BTL's that i have on homeowner mortgages in the dogs name next!!£1000 Emergency fund No90 £1000/1000
LBM 28/1/15 total debt - [STRIKE]£23,410[/STRIKE] 24/3/16 total debt - £7,298
!0 -
Probably has a lump some payment to make at end of term.0
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