Car Finance ending before mortgage application

jchantler102675

Hello everyone, just looking for some advice regarding our upcoming mortgage application.

My husband has finance on his car, this is just to end the month before we intend to apply for a mortgage - my question, how do you think this might affect 1) His credit score and 2) Our mortgage application?

glosoli

In regards to your first question regarding his credit score, as discussed frequently on these boards his credit score does not matter, what does matter is the contents of his reports, particularly active agreements, adverse credit history, whether he is on the electoral register, so on and so forth.

Specifically however in relation to what impact it may have, giving it is ending so closely to when you intend on applying for a mortgage, I would recommend obtaining confirmation from the finance provider that the agreement has indeed been paid off, as when companies credit score you, the data they pull back from experian can be between 4-8 weeks old, therefore it may still show as being an active agreement with an associated payment. It is important that they do not take this payment into consideration when they are considering your application.

Commonly once car finance agreements end, 9/10 people will get a brand new car on finance. It is important that if you are considering doing this, that you advise them of what the likely repayment is going to be, so should they do any further checks towards the end of the process and you have since obtained a new loan then it is of no surprise.