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First time buyer with car finance
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Suffolk04
Posts: 11 Forumite

Hi 👋 I'm hoping for some information regarding my predicament
Me and my oh are looking at getting our own place possibly later this year but not sure if the car finance is holding me back
So my basic salary is 23.5k, but usually 30k with bonus, hers is around 19k. Both have credit score in the excellent range and it's only me who has a 14k car lease that ends February next year.
I'd love to keep the car, but not sure if I got a loan out now how that would affect our application chances, or see if we can get a mortgage first before anything else.
Any comments wether positive or negative welcome
Me and my oh are looking at getting our own place possibly later this year but not sure if the car finance is holding me back
So my basic salary is 23.5k, but usually 30k with bonus, hers is around 19k. Both have credit score in the excellent range and it's only me who has a 14k car lease that ends February next year.
I'd love to keep the car, but not sure if I got a loan out now how that would affect our application chances, or see if we can get a mortgage first before anything else.
Any comments wether positive or negative welcome
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Comments
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Apparently if you take a credit it affects your score for six months and it will definitely affect your affordability.1
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It is unlikely a one off credit check will be a deal breaker to getting a mortgage.
What will probably play a bigger part is what the monthly repayments are. That will probably affect how much you can get.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.1 -
let the car go back, by a cheap one then once complete buy oneDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.2
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Thanks for the replies, currently paying £340 a month on the car finance, and that's pretty much my only outgoing apart from £130 a month board to my parents.
Houses are quite cheapish in the midlands, looking at one around the 170k mark and both got 10k locked in lisa account's.chanz4 said:let the car go back, by a cheap one then once complete buy one0 -
go on halifax calculator run both with and without the car, its suprising how much a car can effectDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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£340 is a lot for a car loan on your income. Get something on lease for £99 until you have bought a house and moved in adjusted to all the extra stuff that inevitably comes with house purchase. Then if all looks flush purchase another car with a bigger monthly premium if you feel comfortable to do so.
Paying £130 current rent and all bills is going to be a big shock to the system in the real world especially with rising energy costs!Shy Bairns Get Nowt2 -
Thanks again for all the replies, feel like the right thing is to sell the car, currently owe 14k and motorway value it at 19k, so yes it's definitely a no brainer, just wanted some advice from complete strangers lol
CottonTail said:£340 is a lot for a car loan on your income. Get something on lease for £99 until you have bought a house and moved in adjusted to all the extra stuff that inevitably comes with house purchase. Then if all looks flush purchase another car with a bigger monthly premium if you feel comfortable to do so.
Paying £130 current rent and all bills is going to be a big shock to the system in the real world especially with rising energy costs!0 -
Suffolk04 said:Thanks again for all the replies, feel like the right thing is to sell the car, currently owe 14k and motorway value it at 19k, so yes it's definitely a no brainer, just wanted some advice from complete strangers lol1
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Yeah sorry its on a pcp contract over 3 year's, this is up in Feb 2023, but thought I could sell to motorway.co.uk or wbac, they settle the remaining balance and I receive whatever is left, or is that wrong?0
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Suffolk04 said:Yeah sorry its on a pcp contract over 3 year's, this is up in Feb 2023, but thought I could sell to motorway.co.uk or wbac, they settle the remaining balance and I receive whatever is left, or is that wrong?
Who is the PCP lender? Assuming its one of the dealer finance companies so BMW/Mini/VW etc, selling the car and paying the settlement is usually fine but give them a call to confirm. You may need to call them to get the exact settlement figure anyway so just ask about selling the car to pay it off.
WBAC and others are offering good prices at the moment so if you have had the car 2+ years, you may be able to sell it and break even with the settlement or possible have some equity depending on your deposit amount and APR.0
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