Train Season Pass

[Deleted User]

I'd be a little nervous about taking car finance 6 months prior to a mortgage. In fact, I wouldn't do it.

The card, not so much, especially with a small balance is on a promo rate and declining.

MallyGirl

1 application in last 6 months wouldn't ring alarm bells - get the amount of debt you have will form part of the affordability assessment for a mortgage

dcouponzzzz

I guess I'll have to schedule a weekly trip up and down the motorway to clean out the DPF or the repair costs on my car would negate any savings I make!

I'll take away everyone's advice and take some time to decide, thanks again everyone

Mr_Goodkat

dcouponzzzz wrote: »

Thanks again guys, I'm lucky you're both on this board Salary is currently 25.5k, moving to 29k basic plus on-call allowance and OT, expected 32-33k. I've been with First Direct for 1 year.

Regarding my considerations, would a successful/failed credit application and a new car finance negatively impact my mortgage application in January? Everything I've read suggests a clean credit history for 6 months prior, and my employer loan is obviously the only one that would retain that.

Salary should not be a blocker to a limit you require but that is only one of the factors they will consider.

A couple of credit searches and a 0% credit card carrying a balance won't be a disaster for a mortgage but it could have an impact and will influence affordability although paying back your employer would also.

I would personally sort out a mortgage before looking at other car finance options.

Are you looking to sell up and buy again or stay and just get a better rate? Moving jobs depending on probation etc could be more of an issue.

dcouponzzzz

I would need to declare the employer loan on a mortgage application for sure. I'm also still deliberating on whether to buy my sister out of the current joint mortgage we have, which would allow me to remortgage with 85% LTV (1.64% with FD opposed to current 4%), sell up and lodge with a friend in Manchester, or sell up and live with the parents and save.

I've got quite a few big decisions on the go here so I don't want to slip up!

dcouponzzzz

Regarding the probationary period, it's an internal move to a subsidiary of my current employer. HR have confirmed my continuity of service won't be affected but I'm yet to receive the new contract for sign off, so unsure if I'll be back on probation.

dcouponzzzz

In case anyone is interested, I ended up applying for the Sainsbury's 0% purchase CC with a provisionally approved credit limit of £5500, but I'm actually going with the employer loan for the train season pass.

The CC is for hiring a car for a city break I'll be taking at the end of the month, I only hope the account is set up in time!

As I'll only need it to cover the £1000 deposit car hire companies reserve, I will likely reduce the credit limit to 1-1.5k

System

I was going to suggest the employer scheme as it's interest free anyway.

I would suggest you leave the limit where it is - it's your only credit card and it's can be harder getting it back up again should you want to book a holiday or something unexpected.

dcouponzzzz wrote: »

In case anyone is interested, I ended up applying for the Sainsbury's 0% purchase CC with a provisionally approved credit limit of £5500...As I'll only need it to cover the £1000 deposit car hire companies reserve, I will likely reduce the credit limit to 1-1.5k

dcouponzzzz

Heng_Leng wrote: »

I was going to suggest the employer scheme as it's interest free anyway.

I would suggest you leave the limit where it is - it's your only credit card and it's can be harder getting it back up again should you want to book a holiday or something unexpected.

Is the amount of available credit not a negative factor for future creditors?

[Deleted User]

It can be, but not a small limit like that.