New PCP Prior to completion

monkeyjm22

Hi All,


Firstly I'd like to say I am aware it is not ideal to aquire any extra credit before completion. However I have a certain circumstance.


Me and my partner have an approved offer for our propert from Natwest, which was issued at the begining of May, however we are not due to complete until October as we are buying off plan (FTB). I am ina position where I need a new car for both personal and work reasons, and the most feasble way financially is to get one on PCP.


I have assessed our affordability and we would still be well over what is rquired and this is not including extra income that I have now developed. So realistically we are actually in a stronger position that when we applied, even with the additional PCP payments if it goes ahead.


Lectures aside please as I know it is not ideal, but what is the likelyhood the offer would be withdrawn. If it is flagged up would they run another affordability check or would they just straight withdraw the offer?


My second question is, Is it possible to actually consult Natwest before taking out any agreement and ask them If they would allow such an agreement?


Help is greatly appreciated.
Thanks
Chris

foxy-stoat

If you do not want any lectures then the only person you should ask is your mortgage adviser at Natwest.

They would need to run another affordability check as they wouldnt take your word for it - thinking about it on your application there should of been a question about taking on any future debt or salary decreases etc, which you probably answered no to. So if circumstances have changed so may your offer of the mortgage.

monkeyjm22

thanks for your response. Yes I would've ticked no at the time.


I guess a better question from my perspective might be, is it possibile to get an answer from the lender themselves as to whether they will or will not allow it? Or would it actually be a new application thats required.


The thing is we haven't actually exchanged contracts as of yet, so we haven't any official agreements. Only an official offer.

financegeek

what options do you have other than taking out a PCP? can you get a cheap run around until you've completed?

i would imagine natwest would be able to tell you if you call them whether it will cause an issue or not?

i certainly wouldn't do anything without checking first, as it could potentially cause your whole application to be declined.

monkeyjm22

Yes i think it would be easiest to check with Natwest, because come to think of it although we have an offer, we haven't exchanged or signed with Natwest for the mortgage. So surely they can assess.

We have checked ourselves and we're still well within the affordability using their calculator (40k or so), so i would've thought they should be ok with it, what would you think?

AnotherJoe

What are the personal and work reasons that you need a new car right now and can't wait 6 months with a cheaper one?

monkeyjm22

I take your concerns regarding why I may or may not need a new car, if we could just accept that I do, that would make this process easier.


All that I would like is your more experienced advice on how you think the banks will appreicate my position. As I said, surely it shouldn't be a great deal as we haven't yet agreed anything so to speak, so its effectively just a procedure of reassessing?


Thanks

foxy-stoat

If you are set on a new car, which it looks like you are, then speak to your mortgage adviser, that is why you have one and his answers will be the only ones that matters.

As previous people have said, taking any new credit may have an affect on your new mortgage - depending on the numbers it may mean a decline, greater deposit or nothing changes.

Good luck and and report back.

monkeyjm22

Yes thank you, That is what I have done now.


I have been in touch this morning with my broker who has sent ther potential revisions in outgoings over for a response.


I'll report back with whatever I receive.