Car Finance After Mortgage Approval

AdamHB8

I appreciate this has been asked a few times so I really appreciate your patience and help for myself who is very new to the whole mortgage process etc.

My partner and myself have an agreed mortgage through Barclays, it's been approved and we have passed underwriting and credit checks etc. We are now just waiting on some enquiries from the searches before we can complete.

At the time of the mortgage being approved I had £453 per month outgoing on a personal car loan which I have now settled in its entirety. The car I have is an old family car and it's on its last legs, this isn't an exaggeration, I struggle to get it in gear the clutch is that bad and the brakes are barely operable and need a full rebuild. All in it would cost me more than the cars worth to fix and it could stop working entirely any second 🤦🏻‍♂️

With the mortgage being approved with the car loan in place which is now settled, I'd like to get a used car on PCP which obviously requires a hard credit check etc. From an affordability stand point I have no concerns as not only will my monthlys be less than on the original check but I've also had a sizeable pay rise since then also.

My concern obviously is that this mean processing a finance agreement (which I haven't done yet - though I did place a deposit on the car to hold it). My gut says that I'd be fine due to affordability being in an entirely better position but of course after reading these forums I am very concerned about allowing a credit check.

What are the risks of Barclays processing a second credit check and finding out about the car finance? (our mortgage was only approved 7 weeks ago so a long way from expiring and we should exchange soon as vendors have already vacated property and we have no chain) 

If they did do a second credit check, would they just outright pull the mortgage offer or would they normally reassess affordability?

My mortgage advisor said he would advise against it but technically I should be fine, he did say that I have to advise them of any new finance as it's a change of circumstances but after reading through my mortgage agreement 3 times I can't see this anywhere?

Very stressful as I absolutely don't want to risk my mortgage but I also don't want to break down and be left with no car. 

Any help/advise especially from and experienced broker or MA would be very much appreciated and again apologies for repeating a questions which is similar to previous. 

TIA

K_S

@adamhb8 As you have mentioned, the standard advice is to avoid. And with Barclays in the picture, if you were my client I'd beg you to not do anything until completion if at all possible.

But of course, if you have no option but to change cars, then it is what it is. Only you can make that judgement.

AdamHB8

Thanks @K_S is it common for Barclays to do a second credit check? 

K_S

AdamHB8 said:

Thanks @K_S is it common for Barclays to do a second credit check?

@adamhb8 There's no hard and fast rule about that sort of stuff I'm afraid.

MWT

AdamHB8 said:

Thanks @K_S is it common for Barclays to do a second credit check? 

If you read the many comments about Barclays and mortgages, it isn't so much that there is any one thing that is common for them to check or not check, more that if there is any possibility of a concern coming up, the path to resolve it is complex and decisions can vanish into the ether for indeterminate periods of time.

So don't do anything that has a chance of triggering a 'concern' as there isn't a lot your broker can do to fix it once that happens...

AdamHB8

@MWT thank you. I think it seems I'll have to try and manage and pray for a bit of luck and that the car doesn't kick the bucket before I complete.

On a side note, I've seen a lot of complaints about Barclays, we went direct as brokers wouldn't even look at our case. Barclays Mortgage Advisor was extremely helpful and the underwriting process etc was an absolute breeze. We sailed through with no queries and our mortgage offer came around 4-5 days after processing the application. There were no unnecessary delays and they also didn't try and hard sell insurance products, sure the option was there but that's how they make extra profit right? We aren't finished yet but so far a very easy process 😊

MWT

AdamHB8 said:

We aren't finished yet but so far a very easy process 😊

Enjoy the wins, just don't poke the bear on the home straight...

ukri

Glad to hear they’ve treated you well OP. My experience with a straightforward remortgage was the absolute pits, going around in circles with not one of them !!!!!! able to tell me what I needed to do to get things moving.

Terrace

You can just rent a car for few weeks I guess, if your car doesn’t last until completion. 

Carl2510

Don’t risk it! It’s not worth it.