Car Lease Vs Car Loan - Mortgage Impact

Yorkshireman79 · 8 February 2019 at 9:27PM

Hi,

Wondering if anyone can help.

We are going to put our house up for sale soon (May) and look to move to a bigger house and we'll need a mortgage.

My current car lease comes to an end in June and I need another car.

I get a car allowance from my employer so I was thinking of buying a car with a car loan for say £14k over 3 years, rather than leasing over 3 years at £400 a month

How would the bank view the car lease vs the car loan? Exactly the same in terms of affordability impact?

I have been leasing for a number of years and generally take out a 2/3 year lease.

Any help would be appreciated.

Thanks

System · 9 February 2019 at 9:27AM

As the figure you would be borrowing and the lease amount would add up to the same amount over the years, I imagine the affordability impact will be the same on either option. I personally prefer leasing over buying though

ACG · 9 February 2019 at 10:37AM

With loans/leases/HP etc lenders would typically go off the monthly repayment. Assuming the monthly repayments are the same for both then they would be treated equally as far as I am aware.