Finance Agreements before Mortgage Renewal

nokiauk

Morning all,

Looking for a bit of advice/confirmation here.

I'm due to re-mortgage at the end of this year (December/January) when I do I will be looking at renewing on a 15 year term with only a 35% LTV.

Now I have heard it can be detrimental to take out a finance agreement within 6 months of a mortgage renewal?

Basically current car is causing issues and I'm keen to lease a new one which will mean a finance agreement/monthly payments which I don't currently have.

Would this have an adverse affect on various mortgage lenders in agreeing to a renewal indeed even my current provider?

Many thanks

fromtheshires

I am with Santander and they just go through the new deal the phone with you and you move onto the new deal when the old on finishes. Depending on the mortgage provider, they may not do credit checks if its just simply getting a better deal and there is no additional borrowing or extending the term - I know Santander do not do additional credit checks for getting a better deal.

If going external, it may have an effect but it depends on how much your monthly debt payments would be as they look at affordability a lot more these days.

nokiauk

In terms of affordability I'd say approx 45% of monthly income is currently spend to include:

Mortgage & Council Tax
All bills incl TV/Insurance/Mobiles etc.
Shopping bills for food etc.

So there will be odd additional expenditure for meals out/drinks etc but overall I'd say that was right, mortgage is currently overpaid by £180 per month which would stop at renewal as I plan to pay a cash lump instead.

If I add my car lease into the equation just now it would mean 52% of my income is outgoing but then go back down to approx 40% after re-mortgage due to lower payments on this.

So I guess if they consider only have 48% of income left as not meeting affordability criteria then I'd be stuffed.

Thanks

fromtheshires

I dont honeslty know how they calculate it all, but why not have a play around on the banks 'How much we can offer' calculators with hte before and after. That way you can play around with scenarios with and without finance and you may be suprised at how much they may offer you.