Take out PCP to get the benefits, apply for mortgage borrowing to overpay & minimise interest?

IAMIAM

I usually buy a car for 15-20k and have it for a good 10 years.

Mortgage 160k
Additional Borrowing 20k
Total Borrowing 180k at 4.74% Tracker HSBC from 1st July (Hoping its 4.49/4.24 by Summer)

Purchase car on BMW PCP, highest deposit, over 4 years, mileage say 15k. Then once agreement up and running, week later, overpay again by the maximum and have a monthly finance agreement of say £50 a month with a view of paying a balloon payment at the end of the 4 years or indeed cancel and return the car.

Whilst that is happening, pay my Additional borrowing on mortgage at say £400 a month so its cleared in 4-5 years....

CliveOfIndia

It's not entirely clear from your post as to what what your actual question is.  My assumption is : 

"If I take out a PCP, will it affect my chances of getting a mortgage?"

Short answer - yes.  In very simple terms any lender will look at your existing debt and factor that into their affordability calculations - along with many other factors.

If you mean you're looking to buy a car and can afford to buy it outright, but want to go for the dealer finance to profit from their contribution, then yes.  Take the finance, pay it off in full, grab their incentives, take the hit of 2 month's interest and pay it off in full.  When you apply for the mortgage, you don't owe the finance company anything, so maximise your chance chance of the best deal.

Or, if you just want to do the PCP thing with the intention of handing it back at the end of the deal, that's also good - you're minimising your monthly outgoings.

IAMIAM

Or, if you just want to do the PCP thing with the intention of handing it back at the end of the deal, that's also good - you're minimising your monthly outgoings.

This basically...