First time buyer with car finance

enthusiasticsaver

Used cars are holding their value at the moment so selling it and clearing the finance is a possibility as £340 a month is a high amount on a fairly average salary. It will affect affordability for a mortgage. There are lots of mortgage calculators online so you can see the affect of the car pcp contract. 

Suffolk04

Just done a mortgage calculator with my bank (Halifax)  they estimated that with a 20k deposit, and a house of 180k, we could get a joint mortgage of 223k over 25 years with my current car loan, would a mortgage in principle be more accurate, not sure what that is 

Rosco32

Suffolk04 said:

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 

I was in a similar situation as yourself up until a few months ago. I was just over 3 years into a 4 year car lease (BMW PCP). I sold the car, made a profit, and it was subsequently flagged as settled on my credit reports. FYI in case you aren't aware, depending on your contract, you are allowed to voluntary terminate the agreement after you have paid off 50% of the finance. This also includes selling your car privately or to another company. I was very reluctant to let my car go too. I had an M140i. I don't miss it at all. I no longer have a huge monthly payment, and I am just in the process of buying the house of my dreams.

Suffolk04

Thank you for that, good to hear someone was/has been in the same situation as me, so decided to start looking for a cheap runaround car now so can end my pcp contract and finally get ourselves a home