PCP / HP / Personal loan - how it effects a mortgage

Tombolombo

Hey guys
We are due to renew our mortgage in June next year and I'd like to take money out to do up the house. In which case I'd like to maximise what we can get from the mortgage..
My current car is on PCP and the loan finishes in January.
My question is - does a lender look at a PCP / HP / Personal loan differently? I'm interested because I'm edging on the side of getting a used car with a personal loan instead of a new car with a PCP loan like I currently have... I assume with a PCP / HP if I don't pay, the finance company can take away my car - but with a personal loan they can come after me and my other property (by the way I plan on paying it!)... therefore, does a mortgage company see a personal loan as more risky and therefore perceive me to have worse credit? The knock on being how much they would be willing to lend? Or does the type of loan make no difference and it's instead the amount I'm paying back or pwed that matters?

Thanks!

tom

[Deleted User]

It'll make little difference -  they will both impact your affordability and the amount you can borrow. 

Buy an affordable car with cash to put yourself in the best position.

Nearlyold

As above, also just to warn you, some car salesman will falsely tell you if it's PCP or HP you take out, that Mortgage lenders will ignore them in calculating affordability because they're secured on the car and not you!! - it's not true.
Mortgage lenders will take into account any committed outgoings (except those that will finish very soon).