buying a house, but need a new car!

uhhuhyeah

Hi there,

I'm in the process of looking for a house, have had a couple of offers accepted but eventually fell through for whatever reason... Hence, I've had successful mortgage applications go through.

My problem now is that my car is starting to die. It is essential for work. I have saved up enough money for a deposit, but not enough to buy a car outright.

My question is, how would financing a car on hire purchase affect any future mortgage applications? And if it does adversely affect any future applications, what are the alternative options to mitigate this?

thanks.

glentoran99

Buy a cheaper car

Mortgage_Moog

Buying a car on finance just before a mortgage application could screw it right up. One of the main things they look at on your interview is car finance, loans etc. and any finance will knock thousands, or even tens of thousands, off what they will lend you.

Davesnave

How much money are you talking about here?

I've never spent more than about £2k on a car, but I could probably find something acceptable for half that, if pushed.

[Deleted User]

Accept that you can buy a 'runner' with your deposit, take a mechanic with you when viewing a car (much like most would have a survey on a house). They will be able to assess the wear of the car engine etc and hopefully stop you buying a wreck.

AdrianC

When you say your car is "starting to die", what makes you say that? It may well be that it's something which can be quickly sorted much more cheaply than buying another car.

If not, then how much are you considering spending? How much CAN you spare from your deposit in order to buy outright?

Grenage

There are many perfectly fine A-B cars for 2k or less; nobody needs a new car.

AnotherJoe

You most certainly do not "need" a new car and getting one now on finance would be a stupid thing to do unless you are borrowing well within the bounds of affordability and multiples.

Until you have your mortgage and are in your new house, either get your car fixed, or get a decent older cheap car.

At that point, if you can afford it and think is worth the money, by all means get one. Right now? Nope.

lewishardwick

Do whatever you need to do the car to keep it running while the purchase is going through.

DO NOT get any kind of financial product while you're in this process.

I'm in a similar position and whilst I'm hoping to be completed in my purchase in the next two weeks, I'm not considering any finance until around march once I've got a few months of running commitments behind me.