Applying for car finance during mortgage application - credit rating worrries

BoiledBreadTomatoSauce

TBagpuss wrote: »

I agree with other posters. Definitely don't apply for a car loan until you have completed.
If you do,then the risk is that if your lenderdoes a fresh credit check, they could withraw or reduce your mortgage offer. e.g. if you borrow £6K for a car, you may find that you can borrow £6K less on your mortgage.
Or whatever amont reduces your monhtly mortage paymetns by £170.

Lenders can and do re-run credit checks at any point up to when the purchase completes.
When I sold my hpuse, this happened to the buyer. He had gone out and bought a load of furniture on credit cards and when they ran his credit check they pulled the mortgage offer and the sale fell through. Which was annoying for me, but presumably much worse for him!


Buy a cheap runaround, put a minimum of £170 into savings every month for a year and then review the position.

Should all this not really prove an issue only if the OP is approaching the limits of affordability based on his salary?

hazyjo

BoiledBreadTomatoSauce wrote: »

Should all this not really prove an issue only if the OP is approaching the limits of affordability based on his salary?

I think people have presumed they are near their limit as they've sold their car to find cash for the house deposit, plus haven't got £8k knocking about.

MrsGreen0872

So thanks for all your replies, just to answer a few things; We have been saving £300-500 per month for what feels like forever. Our rent just keeps going up...so we thought, we really just need to buy ASAP so we sold the car to get the rest, rightly or wrongly.

Yes, we are at the maximum and we are stretching ourselves because we had to put 10% down BUT that's factoring in putting away money for the deposit which thankfully is done now.

I could probably buy a car for £1500 cash max at the moment but I was worrying about reliability which is why I thought of finance.

Someone asked if it was need or want, I need a car because my husband uses his for work (he's a rep) and I have to get two babies to nursery and then myself to work, where I work as a district nurse (do a lot of schools so travel often) at the moment I've insured myself on my mum's car whilst she is away, but she's back soon!

Please don't think I am expecting to lead a lavish 2 car lifestyle and keep up with 'luxuries' and that I don't understand the perils of home ownership, it's literally so I can work and keep my babies safe.

Thanks again to everyone who replied x

Crumble2018

You will always get these sort of replies on here - it's about money saving after all!

However, I am with you on this - I had years of having old cars that were just money pits. Both my husband and I have cars on PCP's now, and re-new our cars every 3-4 years. Yes, it's expensive, but it means we have reliable cars with no unexpected bills.

But do not in any circumstances think about car finance until you have completed on your house, as you could get the mortgage pulled. we are living like saints at the moment until our flat purchase completes - it will all be worth it in the end!

Good luck x