Pressure to take out car lease after mortgage offer

Bardo_Pond

I'd appreciate any advice on this please as I'm getting pretty stressed.

My husband and I have had a mortgage offer from Halifax for a new build which wont be ready till early Oct 2016.

There were no issues with getting the mortgage as we have no debt of any kind and our level of borrowing on the mortgage compared to our income is modest.

However - my husband has been told by his employer that he will 'have' to use their car lease scheme which will involve getting a credit check. He currently has a hire car (arranged through employer) but this isn't allowed to carry on any longer. The payments for the lease vehicle would actually be less coming out of his wage than the current rental hire vehicle so affordability isn't an issue......but the credit check will be I'm guessing.

Taking into a/c the reason for the credit (car lease via employer) and lack of affordability issues where will we stand with Halifax?

He can't afford to just buy a car outright as his employers policy is a car owned (as opposed to on their lease scheme) has to be less than 5 yrs old.

Any help/info would be much appreciated, thank you.

marksoton

Very strange.

I have a company car with a BIK to HMRC or the option of a car allowance. What his employer is suggesting is a material change to his contract of employment.

I'd be on the phone to his HR dept first thing tomorrow.

AnotherJoe

Why would one single credit check 6 months prior to getting a mortgage be an issue? Especially since you are taking a modest loan. Do people make too much of these I wonder ?

Bardo_Pond

Hi contract states that he either has to have a car no older than 5 yrs old or use their lease scheme - which he gets an allowance for. The reason he's not used the scheme already was because he was on probation at the time. There's no actual issue with his employment contract - he's never had his own car as always been provided with a company vehicle before.

marksoton

AnotherJoe wrote: »

Why would one single credit check 6 months prior to getting a mortgage be an issue? Especially since you are taking a modest loan. Do people make too much of these I wonder ?

I'd be more bothered by the fact it's a credit commitment so could affect affordability...

Bardo_Pond wrote: »

Hi contract states that he either has to have a car no older than 5 yrs old or use their lease scheme - which he gets an allowance for. The reason he's not used the scheme already was because he was on probation at the time. There's no actual issue with his employment contract - he's never had his own car as always been provided with a company vehicle before.

Strange company policy. But the 5 year thing if he has his own is normal.

I wouldn't over worry about it.

Dan83

My company insists on a car less then 3 years old, in good condition, clean and emissions below a certain standard, or a company car that cost's £50 per month tax, insured and maintained, it's a bargain.

What's the problem? The fact he has to get a lease car or the credit check?

Bardo_Pond

Sorry, the issue is the credit application showing after the mortgage offer but before completion which can result in the lender potentially changing their mind about the mortgage.

Affordability with the lease in itself is absolutely not an issue - it's just the new application for credit before completion which may make the Halifax revoke the mortgage.

marksoton

Bardo_Pond wrote: »

Sorry, the issue is the credit application showing after the mortgage offer but before completion which can result in the lender potentially changing their mind about the mortgage.

Affordability with the lease in itself is absolutely not an issue - it's just the new application for credit before completion which may make the Halifax revoke the mortgage.

Then i'd speak to the lender and get their take.

Thrugelmir

Presumably requires the car for the job. If the leasing cost is reasonable then difficult to see what the issue will be with regards to affordability. Really a matter for common sense.

Bardo_Pond

Thrugelmir wrote: »

Presumably requires the car for the job. If the leasing cost is reasonable then difficult to see what the issue will be with regards to affordability. Really a matter for common sense.

Yes, he needs the car for work. I agree that if affordability isn't an issue then Halifax would look favourably on this - we're just not sure whether the Halifax would look into it or just see the credit application on Experian and revoke the offer.

Thrugelmir

Bardo_Pond wrote: »

Yes, he needs the car for work. I agree that if affordability isn't an issue then Halifax would look favourably on this - we're just not sure whether the Halifax would look into it or just see the credit application on Experian and revoke the offer.

If you are concerned then speak to them. Lenders don't normally simply revoke offers out of hand. Does your mortgage offer last until October or possibly longer if the build isn't complete.