Co-op Mortgage Application and New Car

aw93

Hello all,

My partner and I are first time buyers and last week put an offer on a house (in Scotland). We are working with a really helpful mortgage broker and he got us a mortgage with the Co-op Bank. There is currently a backlog of applications so it might take a while for them to process our application but we got our mortgage in principle and everything was fine. This week my very old car has decided to die and it is not financially worth me paying for the repairs. For my job I need a car so have found a good deal on a second hand one through a reputable company and plan to view it this weekend. Due to buying the house I do not have enough money to buy the car outright so will need it financed, as it is 2nd hand it is only £170/month over 4 years so very cheap in comparison to many other options.

Additionally my partner and I opened up a joint bank account this week for the mortgage and opted for a small overdraft for safety measures (we didn't think about the hard credit search this would create until after the application). I have excellent credit (999/999 of Experian) and so does my partner and no real debt (£8/month phone and always pay my credit cards off in full each month). Due to potentially having 3 hard searches this month (1 for the mortgage, 1 for the small overdraft and 1 for the car) I am very worried I will be rejected for the mortgage. Our debt to income ratio (car+mortgage)  is low 28-32% so there is no logical reason why we would be rejected for the mortgage. Our mortgage advisor has said it shouldn't affect the application but I am so concerned I can't sleep. 

Has anyone been in a similar situation and it has ended up alright? I could not get the car before the mortgage is approved but its a great deal and I really require it for work. Thanks for reading and any helpful advise would be great!

BoGoF

Bottom line is nobody knows apart from your lender and your advisor should be better placed to comment than some strangers online. If he thinks it will be ok then fingera crossed.

That said it was a bit foolish to take on new credit as normally the lender will check before completion and the normal advice is not to apply for credit for at least 6 months prior to application.

ACG

There are a million different things that go in to scoring your application. 
Your broker knows the situation better than we do. 

Your broker will need to disclose the new finance to the lender, it will then likely be re-scored... Best case scenario, everything is ok. Worst case scenario you get the car but lose the mortgage and then have to look for another lender. 

Only you can way up the risk and reward and decide what to do.