PCP and mortgages

Snowy74

Hi there,

My boyfriend and I are planning on getting a mortgage early next year, however my boyfriend currently pays £380 into a PCP on a car worth £25 000. I have asked him if he could swap his pcp so that he is paying less per month. He found a deal that he would pay £310 per month but on a car worth £37000. Will the outstanding finance of £37000 have an effect on the amount we would be able to lend from the bank or is it purely based on the amount of the monthly payments? So for example if he was paying the same £310 a month but on a car that was worth £10000 instead would the bank be more likely to lend us more?

Also, if he looked at buying a car for £10000 would there be any difference in the amount a bank would lend for a mortgage if he had a loan from the bank and paid the loan off per month as opposed to a pcp?

kingstreet

All based only on monthly payment.

AnotherJoe

Snowy74 wrote: »

Hi there,

My boyfriend and I are planning on getting a mortgage early next year, however my boyfriend currently pays £380 into a PCP on a car worth £25 000. I have asked him if he could swap his pcp so that he is paying less per month. He found a deal that he would pay £310 per month but on a car worth £37000. Will the outstanding finance of £37000 have an effect on the amount we would be able to lend from the bank or is it purely based on the amount of the monthly payments? So for example if he was paying the same £310 a month but on a car that was worth £10000 instead would the bank be more likely to lend us more?

Also, if he looked at buying a car for £10000 would there be any difference in the amount a bank would lend for a mortgage if he had a loan from the bank and paid the loan off per month as opposed to a pcp?

I doubt the car is worth £25k any more

Does it not seem financially nonsensical to you to lock into a longer agreement and pay £10k more !! ) in order to drop £70 a month on the face value of what you are paying?

Are you sure your BF isnt making this up so he can get more expensive cars

When does the payment period end?
What would it cost to settle now?
What would the payments on a loan to cover that be?