First Time Buyers - Car Finance & Self Employed

ah93

Hi All,

I have trawled the internet for some time, and have decided to write a post, as I cannot find any answers that satisfy me.

My boyfriend and I, (both early 20s) are looking to purchase our first property around September 2018. We have a joint annual salary of £85k.

I am happy to rent, but my boyfriend is adamant to get a mortgage. Although I am not sure if we will ever be able to get mortgage, based on the below?

So... Please can I have some advice on the below questions:

Car Finance:
I have a car finance a HP one. I pay around £286 a month. Which pains me to do so. But I can afford it though.. I started this last August, and it ends in 3 years time, so August 2019. At present I have about £14k left on it. My boyfriend is also looking to get a car loan, for around £12-£14k - As I am regretting the finance already, due to now being more aware of how it can affect how much I can borrow, he is insisting we will both be fine with nearly £30k car loans... I know the answer to that one!

Question: Will this majorly affect my lending amount? I am considering 1 of 3 options: 1) Selling my car for more than the remaining price, paying off the finance, and then buying myself a cheap run around with the remaining cash left over? 2) Waiting until I reach the required amount, of where I can hand the car back (Should be around £8K - I'd probably hit this next year?) 3)Getting a bank loan to pay off the finance, atleast then I will officially own the car? How much can car loans/finances decrease how much you can borrow?

Self Employed
My boyfriend is self employed. He has always been a contractor, and decided to go self employed last August, due to the industry he is in. I am in permanent employment.

Question: What are the situations around a joint mortgage with a permanently employed person, and a self employed one? Everything online goes back about 5 years. I cannot seem to find anything recent with advice on this. From what I have found, am I right in thinking there are ways around applying for a mortgage when my boyfriend has 2 years accounts?

Apologies if this may be frustrating, if there are other questions on the ones I have asked on the forum. I feel like I need my questions answered individually.

Thank you SO much in advance!

amnblog

Yes, car finance payments do reduce your mortgage lending potential. As a guide think about £100pm costing you £5,000 in potential lending.

Your Partner recently starting as a Contractor will be a problem with many Lenders, but not so with a few.

If you want to buy today, you probably can. Your post suggests you are not ready to.

ah93

Thank you for the reply.

Nope not ready to move out until atleast next September. My boyfriend will have 2 years accounts by then too.

Not too sure how to resolve my car finance situation?

bighitter4654

Forgive me if you have just made a typo error, but if your car finance deal ends in three years then surely that is 2020?

ah93

Hello!

I started the car finance last August (2016) so it will end in August 2019 :-)