PCP affecting mortgage affordabilty/application

neeshy23

Hi everyone just looking for some advice on my situation 

So if always had 999 credit score and as of recent I applied for a PCP car and also then found out that they then put add the balloon payment onto the amount that they secure against you which is a total of 19k. So after it hit my credit score it only went down to 960 which isn't bad as I thought it would go down some more.

But then I signed up for money saving expert club and saw that my affordability was very weak and also my chance of getting credit cards and loans were low. I also applied for a credit card within the same month which declined and now will leave  hard search

So my thing is that my annual salary is 28k and my debt is around 20k which includes the pcp and also credit cards and catalogue accounts.
 My worry is that it will take ages for my affordability to go up as I'm looking to purchase a house within the next year. Does my score and what all those website say really matter or just what the lenders look at? 

Also on my file my pcp car shows as HP when it should be PCP had this happened for anyone else ?

mwarby

Your score doesn’t matter, it’s the history which is important 

For a mortgage 2 things are key, affordability and deposit

Doneby55

Of course the balloon payment is included - it's part of the finance amount. And it is a form of HP, just with a balloon payment, so I wouldn't worry about how it appears on your credit report. E.g. TransUnion would flag it as 'balloon HP'.

£20k debt on your salary is high though. But not much you can do now but concentrate on paying off store cards etc.  And possibly speaking to a broker to explore mortgage options Esther than applying directly.