Is this normal? Might it make a difference to mortgage app?

Barclayloan_query

If there's anyone reading who may have come across similar I'd be grateful for your views as to whether something on my credit report is normal...

As per my recent thread I decided to take out a contract hire lease vehicle, I was initially worried it might affect affordability - which it does - but playing around with the calculators it will likely affect it to the tune of 15k which is do-able for me (£100 per month lease payment, two year contract).

I checked my credit report and saw that the lease vehicle is now on there... my agreement is for 24 months at £100 per month. It's not a PCP vehicle or HP - it's essentially a long term hire vehicle, I simply hand it back in 24 months and as long as I'm under the mileage and there's no damage then I walk away, there's no option to buy.

On my credit report it shows the outstanding balance as £8500, my contracted payments are £2400 over the next two years - I'm guessing the value of the car is probably around £8500 (list price 10.5k) which is where the figure has come from.

The way I see it I essentially have a 'loan' on my credit report for £8500 when in reality it should be £2400 - am hoping this won't affect affordability any further than the monthly payment affects it?

amnblog

It's payments not the balance that hit the affordability.

Barclayloan_query

amnblog wrote: »

It's payments not the balance that hit the affordability.

Thanks, that's good to know - I used the Nationwide affordability calc and it showed that a £100 per month payment reduced the amount they'd lend by 15k. I was worried it now looking like I 'owed' 8.5k might make things worse!

Barclayloan_query

Just an update to this in case anybody else is in a similar situation...

I queried the amount owing on my credit report which was showing as the total value of the car, rather than my actual contracted payments (car = £8500, amount owed by me = £2400) with the credit reference agency. After a few weeks the finance company replied to say they were amending the data supplied to refelect the balance owing to £2400 :T

I'm happy with this as otherwise it looked like my outstanding debt was much higher than it should have been.