PCP

Jackp26393

If I have a car on PCP will I struggle getting a mortgage? 

AdrianC

It may affect your chances, at the absolute outer end of your affordability.
There are mortgage brokers posting in these part of the forum who could give you a better idea :- https://forums.moneysavingexpert.com/categories/house-buying-renting-selling and https://forums.moneysavingexpert.com/categories/mortgages-endowments

It's certainly a lot of money over the term, that I'm sure you could better save towards the equity of a purchase.

Supersonos

Jackp26393 said:

If I have a car on PCP will I struggle getting a mortgage? 

Mortgage lenders will consider your income and your monthly outgoings when deciding on how much to lend you - they have to ensure you can "afford" to repay the mortgage.  So yes, the additional monthly outgoings of a PCP agreement will reduce what you can ultimately borrow.

My advice, if you can, is to hold off until you've bought the property.

MEM62

Jackp26393 said:

If I have a car on PCP will I struggle getting a mortgage? 

How do we know?  We do not know what your payments are, what your other financial commitment are, how big a mortgage you need, how big your deposit is or what you earn. 
We would no more know whether you would get a mortgage than we would the six winning number in this week's lottery.   You might want to add a bit more information and re-post in the Mortgages and Endowments board.  

Sandtree

Jackp26393 said:

If I have a car on PCP will I struggle getting a mortgage? 

Lenders do affordability checks based on your incoming and outgoing monies. PCP is simply an outgoing set of money, it intrinsically wont make you struggle to get a mortgage but it certainly could cause a problem if you are stretching yourself.

Take home £10k a month, no other debts or other long term commitments, PCP of £300 a month wont make a blind bit of difference. Take home pay of £3,000, £30,000 of credit card debt and a PCP of £750 on a 90% LTV/£400k house... well you weren't getting the mortgage even before you added the PCP into the picture.

In general its not advisable to get new lines of credit around the time of applying for a mortgage but if the PCP has been running 9 months+ then its simply affordability question.