Car Finance & Mortgage Applications.

Mayse29

Hello all, I'm a newbie to the forum so hopefully I will do this right!

I am currently paying off a PCP on my car (£173 pm) which is due to end April 2017 and my options then will be to either hand back the car, start a new PCP or HCP on another vehicle or pay a lump sum of about £4000 (which I don't have) to keep the car I drive now - I would normally start a new agreement.

The situation I have now though is that we are looking to put our house up for sale, at the earliest in the summer, and will be applying for a new mortgage but I'm worried that if we don't sell quickly that I will be needing to re-finance for a car at the same time as applying for a mortgage which I'm guessing will have a big impact on what we may be offered.

So my question is, am I best to re-finance now (I know it would be best to not have finance at all but I can't afford a car outright) although I would then be paying off the remainder of what I owe for my current car on top so perhaps not so wise, or wait until next April and hope that we sell this year and everything is done and dusted before I need to sort out the car situation?

Any advise will be gratefully received.

Mayse29

Just bumping this. Any advice?

RhysHSCC

Difficult to say really, as it will depend on the lenders criteria when credit scoring you.

The thing with any credit application, is that 'multiple searches in a short period of time may impact on your ability to obtain credit in the future' (word for word from a declaration I read multiple times a day.

Credit scoring on an application usually takes place at the beginning of the application, so if your selling in the summer, and start applying for a mortgage at that time, it shouldn't be an problem, even if it takes months to complete on the purchase of your new house and they may not need to credit score you again.

If you wait until the time your car finance is up and do car finance then mortgage app within a short trt, it may deter one or 2 lenders but ideally mortgage first

Mayse29

Thank you for your reply, it's very helpful.