Does having a car lease affect chances of a good mortgage deal?

poppy10_2

:cool: .

kingstreet

Yes, probably.

It will make £200 a month difference, which could be £0 to perhaps around £30k in borrowing power. Subject to any income cap.

Put your details in a lender affordability calculator with it and without it and see the difference.

chelseablue

Could you wait for the car until after you move in?


We have a lease car (£129 a month) but waited until after our purchase completed before applying.


Strangely the car doesn't appear on my credit file at all, and I've checked Experian and Equifax

poppy10_2

. .

Canary_Yellow

Go to a banks online affordability calculator and see what difference it makes and which has the biggest impact.


This is the one I used when going through a similar thought process...


https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/


PS: £25k is a chunky amount to spend on a car. Could you not spend say, £5k on something that will do for now and then lease the car you really want / need once the mortgage is sorted and you're happy all is affordable? A £5k car won't depreciate much in 6 - 12 months.

kingstreet

poppy10 wrote: »

But if I buy the car with cash I'll have £25k less deposit - isn't that worse?

Maybe, maybe not.

Only you can work that out, I'm afraid.

NOVAMET21

Just buy a cheap car for now and get the car you want after you buy the house. Simples!

SavingSteve

You want your cake and want to eat it. As others say, don't jeopardise your chances on getting the house you want because you feel you 'must' have this car. You really do not. Buy cheap, get the house, then decide what you can afford. You'll likely regret it otherwise.