PCP on my mortgage application

misscxx90

Hi all,

Me and my parter are first time buyers, found the home we love and have way more than we need for the deposit.

We got an AIP with Halifax and initially found we could borrow £260k.. turns out we only need £250k.

Anyway, the only debt on the application is our PCP agreement (I say our - it’s in my name). However what I didn’t realise is that the balloon payment is included in the total amount borrow on my credit file ����!♀️. Our application has been with the underwriters over a week. Naturally they queried it as Halifax only calculated what was borrowed by our monthly payments and the term left on the agreement. I sent over more documentation on Monday to our mortgage advisor at Halifax and I’m hoping he sent it on the same day.

Still haven’t heard anything an I am slightly worried that now it will affect our application? Although considering our assessment for affordability passed with flying colours based on our monthly income and outgoings. Does the total value of the borrowing affect it a great deal?

Obviously already anxious and impatient as were itching to get into our home but I don’t want to work myself up too much hope!! The process feels like it’s taking ages..

Any brokers/underwriters on here that can offer any advice?

scholesfan88

I'm sure most go off the monthly payment amount if it isnt being cleared by the time the mortgage starts in terms of affordability.

misscxx90

That’s certainly what I am hoping for 🤞🏻

scholesfan88

I've just been through the same with both mine and my partners PCP in my name and nothing was questioned in regards to the balloon payments.

I assume that the lenders know that the vehicles can be handed back at the end of the payment term and the balloon payment doesn't have to be made.