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Will car finance destroy mortgage chances
uncreative
Posts: 384 Forumite
Just a small question please that has come up tonight.
We are planning to buy a house after Summer holidays (so, August basically) At that point we will have £32k in savings to put down on house. We are currently renting
Target price is £275k, put down £27.6k, pay stamp duty and fees and moving costs means we will have pretty much exhausted our savings.
We currently pay rent of £1,000 and the mortgage will be £1320 a month. We currently save £3k per month.
I have a real opportunity to buy a car that my sister is giving up after a 3 year lease. The car is a premium brand car and is very expensive, £22k is the balance left on it but the market value is probably £26 or £27k. I have about £7k in my car from WBAC so would be looking to finance £15k over 4 years. This will cost about £344 per month.
Based on joint income of £100k Gross (mostly from me) and requirement for £247k mortgage, will this £344 absolutely scupper any chance of getting such a mortgage.
I am hoping that it is do-able. I know that I should just stick with the car I have but this is a definite WANT rather than need. I know the cars origin and it has been fully maintained.
If the £344 a month drops our theoretical borrowing but the £275k is still well within the limit then it does add up for me to go for the car. I have no credit searches other than opening up Barclays current account with no overdraft facility.
Just not sure how the £344 a month comes in to play when assessign affordability,
thanks and sorry for long post.
We are planning to buy a house after Summer holidays (so, August basically) At that point we will have £32k in savings to put down on house. We are currently renting
Target price is £275k, put down £27.6k, pay stamp duty and fees and moving costs means we will have pretty much exhausted our savings.
We currently pay rent of £1,000 and the mortgage will be £1320 a month. We currently save £3k per month.
I have a real opportunity to buy a car that my sister is giving up after a 3 year lease. The car is a premium brand car and is very expensive, £22k is the balance left on it but the market value is probably £26 or £27k. I have about £7k in my car from WBAC so would be looking to finance £15k over 4 years. This will cost about £344 per month.
Based on joint income of £100k Gross (mostly from me) and requirement for £247k mortgage, will this £344 absolutely scupper any chance of getting such a mortgage.
I am hoping that it is do-able. I know that I should just stick with the car I have but this is a definite WANT rather than need. I know the cars origin and it has been fully maintained.
If the £344 a month drops our theoretical borrowing but the £275k is still well within the limit then it does add up for me to go for the car. I have no credit searches other than opening up Barclays current account with no overdraft facility.
Just not sure how the £344 a month comes in to play when assessign affordability,
thanks and sorry for long post.
Total Credit Used...=........£9,000 / £52,700
Mortgage..............=........£138,000 , 20 Years left.
:starmod:CC cashback for this year..=........£112.88 £205.81 banked in 2015
:starmod:YNAB User & Mortgage Free Wannabe
:starmod::A19/03/16
Mortgage..............=........£138,000 , 20 Years left.
:starmod:CC cashback for this year..=........£112.88 £205.81 banked in 2015
:starmod:YNAB User & Mortgage Free Wannabe
:starmod::A19/03/16
0
Comments
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Enter the details in different lenders' online affordability calculators with and without the car finance and see the impact.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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I'm buying a house and had to include my current mortgage of £375 a month in the application as I'm not selling it (and not currently renting it out). It didn't make a huge difference on the mortgage calculators and we've got a mortgage in principle of around 4.5 times our combined salaries.0
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My partner and I applied for a mortgage and I have £233pcm car loan going out. Didn't seem to effect our affordability (so far, I don't want to curse it!). We got an AIP and are currently awaiting outcome of out application0
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Your definitely not pushing affordability boundaries so I can't see that being a problem.0
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