Car loan affecting mortgage

sparkly_sun

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.

stalkah

What happens to the other person if you stop paying?

stator

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.

sparkly_sun

stalkah wrote: »

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.....

betmunch

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.

sparkly_sun

I've slept on it and I've decided I'm not going to do it - it all makes me feel a bit uneasy!

amnblog

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.

andyfromotley

amnblog wrote: »

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!!

stalkah

Probably has a lump some payment to make at end of term.