Borrowing before a remortgage

Danny30

Hi, after some advice please.

I am due for a remortgage in May and have about an 85% equity in the property and a more than sufficient enough income to be able to Borrow the required amount.
My question is, I am looking to borrow around £5k to buy a car (will pay the remainder with savings).

I know they say ideally you should never Borrower before a mortgage, but would applying for a credit card now and putting £5k on it realistically affect my chances of a remortgage assuming my income is higher than required anyway? 

MWT

Do you actually mean a 'remortgage' which would imply you are changing lenders, or are you just looking to take a new product from your current lender?

If it is the later then there is usually no financial review and the car loan wouldn't be a concern.

Danny30

MWT said:

Do you actually mean a 'remortgage' which would imply you are changing lenders, or are you just looking to take a new product from your current lender?

If it is the later then there is usually no financial review and the car loan wouldn't be a concern.

It's a remortgage with a new lender. Is any loan before a remortgage considered bad, even if completely affordable? 

kingstreet

Usual advice is to avoid anything requiring a hard search. Likely impact on you is impossible to say as every case is different.

fergie_

Point number 1 is that a credit card isn't a loan.

Opening a new credit card will result in a hard search which may or may not impact on your remortgage. Best advise would be to do it at least 6 months, but ideally more than a year before the remortgage. 

Point number 2 is that most dealers will not accept credit cards to buy a car. Maybe for a deposit, but the rest would need to be cash or car finance. That's assuming you aren't planning a cash advance.

Point number 3 is that the mortgage lender will look at your credit record and more importantly your financial obligations. They may reduce what they wish to lend by what they feel your other repayment obligations are. Of course this isn't an issue if your affordability is say 500k, but you only want to remortgage £200k. However, it is if its the difference between agreement and no agreement.

Best to see how much headroom you have and if possible to remortgage before needing a new car.