Refinancing car before mortgage e

Techbe

I’m buying a new build, due to built in Jan, my car finance is due in November, if I was to refinance for the same value or slightly less would this still affect my mortgage? As I technically wouldn’t be borrowing any more money?

If I was to pay it off, it would like me with roughly 6,500 left which I worry wouldn’t be enough to furnish my house and pay for flooring 

AFF8879

What did you say on your mortgage application about the car finance? Did you give an end date of your current agreement, or otherwise indicate it would be paid off before your mortgage was drawn down?

If not, then I think you should be ok although it’s generally advisable to avoid anything that hits your credit report in between exchange and completion (I’m also in the same camp having also reserved a new build!)

It may be worth a phone call to your mortgage lender just to explain the situation; it would give you peace of mind to proceed and if you’ve given them notice in advance I can’t see it being much of an issue.

Techbe

AFF8879 said:

What did you say on your mortgage application about the car finance? Did you give an end date of your current agreement, or otherwise indicate it would be paid off before your mortgage was drawn down?

If not, then I think you should be ok although it’s generally advisable to avoid anything that hits your credit report in between exchange and completion (I’m also in the same camp having also reserved a new build!)

It may be worth a phone call to your mortgage lender just to explain the situation; it would give you peace of mind to proceed and if you’ve given them notice in advance I can’t see it being much of an issue.

Yeah spoke to him today, he said as long as the payments are the same or less it’s fine. I also got a better deal on my car finance away from Mercedes