PCP balloon payment help needed

Jensav3676

My pcp contract is coming to an end.. I have some saved to buy the car but not all so I have to either borrow if get a one.

the problem is my 5 year fix rate on my mortgage ends next April so I need to remortgage to a new rate.

is taking the loan out going to damage my credit rating now so I wont get the best deal on my mortgage?
My credit rating is currently ok and I’ve never missed a payment on either loans or credit cards etc but I am a single income, divorced woman and although I’m employed it’s not a high salary. 

didnt time it very well did I? Any advice is much appreciated. Thank you in advance 

fatbelly

It won't damage your rating directly but will increase your overall indebtedness so yes it will have an effect.

What is the value of the car relative to the balloon payment?

Have you talked to your garage about deals for a new car?

You may find getting a loan to fund this one isn't the most attractive option.

Jensav3676

i love this car. 😂
the balloon is about £6k, car was brand new when I bought it and has hardly any miles on it as it was 2020 so covid and started working from home not long after so i know i would get a great deal on a new one but that would also give me an even bigger debt to deal with so I thought as I love the car I’d be better to refinance for the lower amount of the balloon payment.

its so hard to know what to do for the best! 

born_again

Take a loan.
Then when time for Mortgage, just pick one of your current lenders fixed rates & there is no financial details required. So the loan does not even enter the equation. 
OK it may not give you the best rate, but saves a lot of messing around.

pdel61

I assume the mortgage will be a lot more expensive than the previous one, so make sure you can afford it with any loan you take