Remortgage due soon and need to replace car

Sabriski

Our current fix will come to an end in Dec so we’ve been looking at our options. By the time we remortgage, our LTV will be around 42%.

We were going to replace our car after getting the remortgage, however, it looks like the current car it’s going to go kaput some time soon so will need to replace it asap. We’re looking at all options, finance, leasing, PCP. We pdon’t have any other finance and will be able to put about 7k down on the car.

Can anyone advise what will have the least impact on our remortgage?

K_S

@sabriski Generally speaking, the impact (if any) on your affordability for a remortgage (changing to a new lender) will depend on the size of the monthly outgoing, not so much on whether it's a car loan, PCP or lease.

If you have no other debt in the background, and are borrowing well within affordability, then there might be no impact at all. I would recommend playing around with a couple of lender affordability calculators to see what impact it has.

https://online.accordmortgages.com/public/mortgages/quick_enquiry.do
https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

If you're looking to stay with the current lender, and not looking to borrow more or change term. that will be a rate-switch/product-switch/product-transfer and that will involve no income checks, credit checks or underwriting, so the new debt should have no impact on your options.