Would carrying out voluntary termination on car finance effect a mortgage that hasn't complete yet

arn002

Hi 

I have a mortgage in progress that isn't that far away from completion,  I would like to use my right to terminate a car finance agreement but i am a little reluctant to do so as i don't want it to interfere with the mortgage i have in progress.  

I am eligible to carry out the voluntary termination as i have paid over 50% of the cars worth and haven't defaulted on any payments, if i was to go ahead with the voluntary withdrawal does any one know weather it would effect the mortgage? 

Many thanks    

[Deleted User]

Terminating means you'll be ridding yourself of a debt, which is a good thing.

dimbo61

Can it wait a month or two ?
You need to read the Terms and conditions of the finance agreement you signed with the Car/Finance company to see how this might effect your credit file.

I am sure this will effect your credit score

Unless your paying off the debt early ?

chanz4

some lenders mark as vt others settled in full.  However as its an option within the agreement cant see the lender holding it against you

K_S

arn002 said:

Hi 

I have a mortgage in progress that isn't that far away from completion,  I would like to use my right to terminate a car finance agreement but i am a little reluctant to do so as i don't want it to interfere with the mortgage i have in progress.  

I am eligible to carry out the voluntary termination as i have paid over 50% of the cars worth and haven't defaulted on any payments, if i was to go ahead with the voluntary withdrawal does any one know weather it would effect the mortgage? 

Many thanks    

@arn002 I can't speak for your specific case but I've never had a client whose mortgage offer was adversely affected because of a credit-commitment that was (properly) terminated prematurely. So I would not expect a properly carried-out car lease vt to impact an existing mortgage offer.

But if you are likely to be stressing about it all through to completion and completion isn't too far away, it may be worth holding off just to preserve your peace of mind. No shame in doing that

Grumpy_chap

Before proceeding with VT, has the OP checked whether they can sell the car and clear the finance with the proceeds, keeping any excess for themselves?

With current high used car prices, this may work.