Remortgaging soon - PCP/Loan question...

SPD14

Hi,

In May, my wife and I will be looking to remortgage and free-up some capital for a house extension/renovation.

The house is worth approximately £340k and we've currently got an outstanding mortgage of £203k.

I currently have a PCP car which has £13k left on the finance, and as the 3 year PCP ends shortly, i'm wanting to take out a loan of £13k to purchase the car outright.

The question is - will replacing the PCP debt of £13k and approx £300pm with a personal loan debt of £13k and approx £290pm be in any way detrimental to the forthcoming remortgage application?

My wife is worried whereas I can't see it being an issue at all. Who's correct, or are we both wrong?

Thanks!

Thrugelmir

If you don't purchase the PCP vehicle. Presumably you would need finance to acquire something else. You'd still have an outgoing. How much it is will determine the impact on affordability.

SPD14

Correct.

I’m in a position where I have to deal with it one way or another.

The car PCP runs out before we need the remortgage, so I believe the best option is to purchase the car via a loan.

If I had cash I’d use it, but unfortunately I don’t.