Lease Car

GolfR12 · 8 May 2018 at 12:30PM

Hi guy,

I was wondering whether a true car lease (not a PCP, no option to purchase etc) reports on your credit file? If yes, does it report as monthly instalments or as the value of the car? My understanding is as you’re effectively renting the car and not financing, it should not report at all.

My partner is looking at leasing a car; however, we will be looking to purchase a house towards the end of the year so don’t want this to affect how much we could borrow on a mortgage.

I have seen some conflicting advice on other threads I have seen hence the reason I have started a new thread.

GolfR12 · 8 May 2018 at 12:31PM

Edit: Guys*

[Deleted User] · 8 May 2018 at 12:41PM

It will yes as it's a credit/financial agreement

BoGoF · 8 May 2018 at 1:08PM

Mines doesn't show on Equifax....that is only one I have checked though.

gash · 8 May 2018 at 1:12PM

It will affect what you can borrow for a mortgage because it will reduce your monthly disposable income, which will lower the amount of monthly mortgage repayment you can afford.

DCFC79 · 8 May 2018 at 1:30PM

Better if you can buy cash.

[Deleted User] · 8 May 2018 at 5:20PM

Mine shows as a lease with the total borrowed as the total amount of payments to make (not the cost of the car).

MEM62 · 9 May 2018 at 10:35AM

What is shown on your report is not the final determination for affordability checks. You will have to declare your monthly expenditure / financial commitments when applying for the mortgage so whether this is a lease of PCP is largely irrelevant.