Loan application

barrymckeown83

I am applying for a loan to cover a final balloon payment on a pcp car finance deal. Do i need to declare the outstanding pcp balance on the loan application even though the loan will effectively be cancelling it out?

DCFC79

barrymckeown83 said:

I am applying for a loan to cover a final balloon payment on a pcp car finance deal. Do i need to declare the outstanding pcp balance on the loan application even though the loan will effectively be cancelling it out?

Depends on what your asked.
If your asked for any other commitments eg a pcp finance then I would assume you would do, the loan provider had no idea of ypur plan, they aremt psychic.

barrymckeown83

The loan provider only asks if i have any other loans, nothing about pcp or hp etc. It is more that one will pay the other. I will at no point be paying both so clearly my affordabilty is different when declared or not.

bazzyb

barrymckeown83 said:

The loan provider only asks if i have any other loans, nothing about pcp or hp etc. 

PCP and HP are both loans. 

DCFC79

barrymckeown83 said:

The loan provider only asks if i have any other loans, nothing about pcp or hp etc. It is more that one will pay the other. I will at no point be paying both so clearly my affordabilty is different when declared or not.

You've had the answer.

My point still stands, the lender has no idea you will do what you say you will do with the loan so will base the apr they offer based on the infor ation you give when you apply.

jonesMUFCforever

OP if you don't declare the PCP you will be making a fraudulent application.
The amount does not need to be the exact penny but an accurate estimate eg say you owe £5467 then saying £5500 would be acceptable.
You lender does not know that you will pay off your existing debt with this new loan.