Advice on settling debt?

917700

Basically, I have a PCP car finance.  The payment is £880 per month X 32 remaining months, and the final payment is £34,585. I initially considered to hand the car back to finance company at the end. However, I was told, the car finance can significantly effect my borrowing amount. 

If I completely settle this car finance, I will need to pay £55,000. If I pay £28,000 now, I can bring the month payment down to Nil every month. But the credit report will still show the liability of the final payment of £34,585

Any advice? 

Many thanks in advance.

917700

I should probably make it clearer, any advice on settling existing debt before apply a mortgage? 

[Deleted User]

debts are all relative to income v amount of mortgage you want 

what is house value
mortgage wanted 
salary ( salaries ) 
any other debts ? 

917700

Densol said:

debts are all relative to income v amount of mortgage you want 

what is house value
mortgage wanted 
salary ( salaries ) 
any other debts ? 

Hi Densol

Thanks for your reply. 

The house I am looking for is around 500k

The mortgage I want is 350k to 450k

My income based on SA302 is 48K per year. My wife takes 30K salary in my company. After take salary and dividends, I still have 50k profit left in the company. 

No other debts, two kids 

First time buyer and currently renting a property. 

I learnt a criteria called Debts to Income ratio, but I don’t know how to calculate that. 

Many thanks for the advice.