Help with Pcp and mortgage please. First time buyer!

Bm1937

Hi
This is my first time posting and I'm looking for some advice please!
I'm 25 and will be buying my first house with my partner next year hopefully!
I currently have a car on finance which is due to run out July 2020. I have had this for 3 years and made payments on time and according to experian my account is in good standing. Now, due to the balloon payment my credit on experian is £5000 more than what is left for my actual monthly repayments for the car. I have approx 7 months left at 253 a month which it leaves total credit at between 7 and 8k.
Because of this, would this be seen by lenders the amount I have left to pay on Pcp which is apprpx 17000 or the full amount of remaining credit?
I will not be keeping the car and will not be paying the final the payment at the end and undecided as to whether or not to go back to Pcp.
I just want to make sure everything is organised for when we apply for a mortgage.
In terms of credit I have just my car, insurance (which I'm going to pay in full next month) and then a credit card which is cleared each month and has about 12% useage.
I just want to ensure I'm not using too much credit to be seen bad to lenders

Any help is appreciated
Thanks

ACG

When it comes to loans/lease/PCP - lenders are more interested in the repayments than the balance.

Credit cards, they are more interested in the balance.

If you still have the car when you apply, just be careful with your choice of lender, some lenders will assume the debt is remaining/the car will be replaced. If it passes affordability regardless, it makes no odds I suppose but if it does not pass witht he car then there are a few lenders where it would be a problem.

Bm1937

Brill thanks for that. We will be applying for a mortgage after may 2020 which is when I can use my LISA and my car is due to finish July 2020.
Another quick question. If for example I had a money transfer credit card and had used 1000 -£2000 on it and was paying this off at varied amounts each month but meeting the mini payment would this affect me badly? I worked out if I was to do this I could have it paid off fully by august 2020

Thank you

[Deleted User]

Bm1937 wrote: »

Brill thanks for that. We will be applying for a mortgage after may 2020 which is when I can use my LISA and my car is due to finish July 2020.
Another quick question. If for example I had a money transfer credit card and had used 1000 -£2000 on it and was paying this off at varied amounts each month but meeting the mini payment would this affect me badly? I worked out if I was to do this I could have it paid off fully by august 2020

Thank you

They will take, on average, 3% of the outstanding balance as a monthly commitment. £1000 credit card is unlikely to impact affordability in any real way. A lot of the affordability models assume a certain level of revolving credit in the background

Bm1937

So getting a money transfer card and paying off £2000 would be considered ok for the application.
The only credit I have is my car which has £1700 left to pay, my credit card which I use according to experian a mac of 12% per month and all my other things are paid off fully or I have made early repayments to close the balance.
I was wanting to use the money to just pay off a few direct debits and add to my savings a little bit. And I was looking to pay a minimum of £250 a month.