saving for a deposit

orange86

Hi folks, I'm saving for a house deposit and hoping to have maybe £25k in about 4 months time.

i have a 10 year old car that costs me money in repairs every year! it needs front suspension work and maybe clutch work doing. not sure on cost. im thinking of cutting my losses and getting a newer car.

If i do this, will it cause a big impact to the amount i can borrow for a mortgage ?
should i upgrade my car after buying a house?

csgohan4

debt affects your affordability and ultimately on your deposit potentially.


NO shame in having old bangers, had a few myself. sure they cost a bit in repairs, but certainly didn't cost as much as a new car

bigisi

orange86 wrote: »

it needs front suspension work and maybe clutch work doing.

So standard wear and tear than even "newer" cars suffer from?

orange86 wrote: »

not sure on cost. im thinking of cutting my losses and getting a newer car.

So to save a few hundred in repairs you're looking at spending probably thousands on a car which will also need maintaining?

If you want a new car that's fine but don't dress it up as trying to save money as that is almost never the case.

And yes, any borrowing will reduce the amount of money a lender will offer you due to reduced affordability.

sal_III

bigisi wrote: »

So to save a few hundred in repairs you're looking at spending probably thousands on a car which will also need maintaining?

If you want a new car that's fine but don't dress it up as trying to save money as that is almost never the case.

And yes, any borrowing will reduce the amount of money a lender will offer you due to reduced affordability.

New clutch and suspension is not £100s it's £1k+ and you both missed the point. OP didn't say "new" car, but "newer" car. 10 years is usually the point where most cars start detiriorating rapidly and repair bilsl start piling. Depending on the make/model it's might be cheaper to cut your losses and sell/scrap it and buy a newer 5-6 years old car for a little bit more than the cost of the impending repairs of the old one.

If you use part of your savings to buy the newer car it won't reflect on your credit file or mortgage eligibility, other than reducing the size of your deposit.

If you buy the newer car with credit, this will have some minimal impact on your credit file and will affect your affordability ergo maximum you can borrow on your mortgage.IT will not prevent you from getting a mortgage. If that was the case half of the UK population would be unable to get a mortgage since so many people lease their cars.

bigisi

sal_III wrote: »

New clutch and suspension is not £100s it's £1k+ and you both missed the point. OP didn't say "new" car, but "newer" car. 10 years is usually the point where most cars start detiriorating rapidly and repair bilsl start piling. Depending on the make/model it's might be cheaper to cut your losses and sell/scrap it and buy a newer 5-6 years old car for a little bit more than the cost of the impending repairs of the old one.

If you use part of your savings to buy the newer car it won't reflect on your credit file or mortgage eligibility, other than reducing the size of your deposit.

If you buy the newer car with credit, this will have some minimal impact on your credit file and will affect your affordability ergo maximum you can borrow on your mortgage.IT will not prevent you from getting a mortgage. If that was the case half of the UK population would be unable to get a mortgage since so many people lease their cars.

Congratulations on the massive assumptions.

You correctly state it depends on make and model but the bill for a new clutch and some (unspecified) "suspension work" could quite easily be a few hundred quid. For example, new clutch on my over ten year old car (when exactly can I expect it to "start detiriorating[sic] rapidly" bearing in mind it's been well looked all it's life?) is £430 at my usual garage and the "suspension work" I completed recently was replacing a drop link at £13.32. Hardly the £1k+ you're bleating on about.

Crumble2018

You'll always get the "don't buy a new car" answers on here, as the focus is on money saving! However, my husband and I both drive modern cars, and no, it wont affect your chances of getting a mortgage. However, it WILL affect the amount you can borrow, so bear that in mind!

sal_III

bigisi wrote: »

I completed recently was replacing a drop link at £13.32.

At that price you either did it yourself or the local mechanic must be a truly remarkable lad. Most won't even open their toolbox for £13.32