Mortgage, Credit Card, Car Lease Query

Maitland88

Hello All, long time reader, first-time poster in need of advice....
So I have a fair rating on my credit history, this is due to a mistake on my part swapping banks and forgetting to pay the overdraft, a silly error.

I'm in the middle of buying a house, and I've just sold my car to pay my credit card off, which I have now done. I have the intention of leasing a car shortly. 

My question is, having paid off my credit card, I'm hoping this will correct/ improve my credit rating, so boosts my chances of getting the mortgage accepted. Will trying to lease the car harm my chances of getting the mortgage, or will it have a positive outcome on my credit score? Or shall i delay the lease till the mortgage outcome?

I hope this is in the write thread.

any advice would be great, 

MovingForwards

Ignore the credit score / rating as it's not seen or used by any financial institution as they have their own internal algorithm methods for scoring an application.

Any credit commitments will reduce your affordability.

Buy a used car as owning a home can be expensive with unexpected emergencies, sometimes even within a few weeks of moving in.

kingstreet

A car lease will require a hard credit search which will automatically worsen your credit profile on the approach to a mortgage application. What was the result of forgetting the overdraft? Default? Who told you repaying a credit card was a good idea on the approach to a mortgage application? It may well have been more sensible to use the money to increase your deposit if you have a credit issue rather than improve affordability. Get broker support if you haven't already.

csgohan4

https://forums.moneysavingexpert.com/discussion/5930981/help-mortgage-offer-withdrawn-after-exchange/p1

As always no new credit until completion, buy a car on lease and it will affect your affordability, you have been warned. 

Sadly the above person did it anyways and their mortgage offer was withdrawn

Maitland88

Thanks, good that I asked here!

https://forums.moneysavingexpert.com/discussion/5930981/help-mortgage-offer-withdrawn-after-exchange/p1

As always no new credit until completion, buy a car on lease and it will affect your affordability, you have been warned. 

Sadly the above person did it anyways and their mortgage offer was withdrawn

kingstreet said:

A car lease will require a hard credit search which will automatically worsen your credit profile on the approach to a mortgage application. What was the result of forgetting the overdraft? Default? Who told you repaying a credit card was a good idea on the approach to a mortgage application? It may well have been more sensible to use the money to increase your deposit if you have a credit issue rather than improve affordability. Get broker support if you haven't already.

No one told me it would it would be better, I assumed paying my credit card would be a positive move. Result just seems to put a red mark on my checkmyfile account. 

Thanks for the responses guys