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Can getting a new car on lease damage our chance of a good mortgage rate?
Spzbad
Posts: 5 Forumite
Hi,
My girlfriend and i are due to have saved enough for 5% deposit for help to buy by Jan (Approx 17k).
Our current car is on its way out and we have a lot of long journey we need to do due to new babies in family etc. and want to get a new car. Our close friends have a HP (Hire Purchase) contract on their car and it seems to be working fine for them.
The only trouble is it counts as a loan and im worried this will change our mortgage offers. On the other hand both my girlfriend and i have excellent cred and both in the high 900s in Experian so just wondering if anyone knows the best way to go instead of using our savings on a car and pushing buying a house back into later next year.
Thank you in advance!
My girlfriend and i are due to have saved enough for 5% deposit for help to buy by Jan (Approx 17k).
Our current car is on its way out and we have a lot of long journey we need to do due to new babies in family etc. and want to get a new car. Our close friends have a HP (Hire Purchase) contract on their car and it seems to be working fine for them.
The only trouble is it counts as a loan and im worried this will change our mortgage offers. On the other hand both my girlfriend and i have excellent cred and both in the high 900s in Experian so just wondering if anyone knows the best way to go instead of using our savings on a car and pushing buying a house back into later next year.
Thank you in advance!
0
Comments
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I do a lot of long journeys in my car and it cost me £1500 to buy - if your thinking about a 95% mortgage (H2B) then taking on any more debt, HP or lease will only count against you. Forget about "good rate" you just want a mortgage.
Either maintain your current car (which will be the cheapest option) or sell it and buy a car for a few thousand, until you complete your mortgage and then look to take out finance a few months after you have moved in.
Remember that you have 5 years to save up the 20% or start to pay interest on it, which may make your financial position worse.1 -
Yes it can. But how much depends on your credit histories (not the made up scores) and your affordability.
Prioritise what you want the most.1 -
which is more important at present? Car or home? at 95% LTV, a new car maybe the difference in getting the house you want or a house at all"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP1 -
Thanks for your input everyone. I think its obvious now you raise them points. I think we will go ahead with servicing our current car and try lease a new one once our mortgage is sorted.
@foxy-stoat Where did you get your car? and which one did you go for? I know this is a different topic, but just wanted to ask quickly.
Thanks!0
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