Company car lease and mortgage

logon94

Hello,

I am currently in the process of buying a house, but my car has come to the end of its lease.

I am planning on leasing a new car through my limited company, of which I am a director.

If I take out a lease via the limited company, will this be visible anywhere to a lender?

I’m concerned the borrowing will go against my personal credit file or that the lease company will carry out a hard credit check on me personally as a director.

Any input would be greatly appreciated.

thanks

Grumpy_chap

logon94 said:

Hello,

I am currently in the process of buying a house, but my car has come to the end of its lease.

I am planning on leasing a new car through my limited company, of which I am a director.

If I take out a lease via the limited company, will this be visible anywhere to a lender?

I’m concerned the borrowing will go against my personal credit file or that the lease company will carry out a hard credit check on me personally as a director.

Any input would be greatly appreciated.

thanks

It is quite likely that the lease via the Ltd Co will require a personal guarantee so that may show on personal credit records.

When does the current lease expire and when do you plan to order a new car?  New cars are on a long lead time at present unless you accept available stock vehicles.

Could you buy a much cheaper vehicle (cash) as an interim and then arrange a new car once the house purchase has completed?  It does not sound like that will be long in any case.

As an aside, if you lease through your Ltd Co, there are tax reasons to consider an EV.