lease car affecting first mortgage help please.

Jsutherland7

Hi there hope you are all well,
im currently applying for my first mortgage. 

Viewed the property yesterday and love it.

its £1300 a month.
Ive been told im just under the line for being accepted for shared ownership. 

Based on my earnings/outgoings.
im running at 54.7% if the mortgage was to be accepted mortgage including current earnings are over the 50% mark failing me at the moment.

my broker had said my £260 a month car finance payment is the cause of the problem.

I’m wondering what I can do here to either take the car back, for a price I guess,

or try and get the payments down by asking for more years and in return getting cheaper monthly payments (i.e £150)

it’s a 4 year contract and I’ll be at 2 years in December.

any info would be greatly appreciated. I really want this place to start fresh somewhere. And it’s frustrating that im
only just over the affordability side of things.

m0bov

For a first mortgage, best clear all finance outgoings for things like loans, credit cards etc..

DullGreyGuy

Jsutherland7 said:

my broker had said my £260 a month car finance payment is the cause of the problem.

I’m wondering what I can do here to either take the car back, for a price I guess,

or try and get the payments down by asking for more years and in return getting cheaper monthly payments (i.e £150)

it’s a 4 year contract and I’ll be at 2 years in December.

First of all you say its a lease and subsequently you say its on finance? Which of the two is it? Your options will be different if its a PCH/Lease or PCP/HP.

Jsutherland7

DullGreyGuy said:

Jsutherland7 said:

my broker had said my £260 a month car finance payment is the cause of the problem.

I’m wondering what I can do here to either take the car back, for a price I guess,

or try and get the payments down by asking for more years and in return getting cheaper monthly payments (i.e £150)

it’s a 4 year contract and I’ll be at 2 years in December.

First of all you say its a lease and subsequently you say its on finance? Which of the two is it? Your options will be different if it’s a PCH/Lease or PCP/HP.

Thanks for quick reply! On my online account it just says 

Personal contract purchase Agreement.

its over 4 years. And then I have a 8k balloon payment at the end.

i was told i have the option to sell it privately or to a dealer mid term aswel. 

they sent me a logbook with my name on it when the deal went through. 

Could you tell with the information above what type it is?

if not I’ll call them tomorrow to find out

thanks 

DullGreyGuy

Jsutherland7 said:

DullGreyGuy said:

Jsutherland7 said:

my broker had said my £260 a month car finance payment is the cause of the problem.

I’m wondering what I can do here to either take the car back, for a price I guess,

or try and get the payments down by asking for more years and in return getting cheaper monthly payments (i.e £150)

it’s a 4 year contract and I’ll be at 2 years in December.

First of all you say its a lease and subsequently you say its on finance? Which of the two is it? Your options will be different if it’s a PCH/Lease or PCP/HP.

Thanks for quick reply! On my online account it just says 

Personal contract purchase Agreement.

its over 4 years. And then I have a 8k balloon payment at the end.

i was told i have the option to sell it privately or to a dealer mid term aswel. 

they sent me a logbook with my name on it when the deal went through. 

Could you tell with the information above what type it is?

if not I’ll call them tomorrow to find out

thanks 

So its a PCP (or HP with a balloon if you want to be technical) rather than a Lease; it does mean you probably have more options.

Firstly contact the finance company and get an early settlement figure, then check with the likes of We Buy Any Car and their competitors what the current value of the vehicle is so you can compare it to the debt. 

With an 8k balloon you are probably not half way through the total debt but if you were then a voluntary surrender is another option, check what the total repayable on the debt is and compare that to the total of payments to date. 

Tell your mortgage broker its a PCP not a Lease and see if you refinanced it over a longer term if that would make a difference, it probably would but when we did our loan application for some debts they weren't actually interested in the actual repayments but did their own calcs and so refinancing may not help. 

Jsutherland7

DullGreyGuy said:

Jsutherland7 said:

DullGreyGuy said:

Jsutherland7 said:

my broker had said my £260 a month car finance payment is the cause of the problem.

I’m wondering what I can do here to either take the car back, for a price I guess,

or try and get the payments down by asking for more years and in return getting cheaper monthly payments (i.e £150)

it’s a 4 year contract and I’ll be at 2 years in December.

First of all you say its a lease and subsequently you say its on finance? Which of the two is it? Your options will be different if it’s a PCH/Lease or PCP/HP.

Thanks for quick reply! On my online account it just says 

Personal contract purchase Agreement.

its over 4 years. And then I have a 8k balloon payment at the end.

i was told i have the option to sell it privately or to a dealer mid term aswel. 

they sent me a logbook with my name on it when the deal went through. 

Could you tell with the information above what type it is?

if not I’ll call them tomorrow to find out

thanks 

So its a PCP (or HP with a balloon if you want to be technical) rather than a Lease; it does mean you probably have more options.

Firstly contact the finance company and get an early settlement figure, then check with the likes of We Buy Any Car and their competitors what the current value of the vehicle is so you can compare it to the debt. 

With an 8k balloon you are probably not half way through the total debt but if you were then a voluntary surrender is another option, check what the total repayable on the debt is and compare that to the total of payments to date. 

Tell your mortgage broker its a PCP not a Lease and see if you refinanced it over a longer term if that would make a difference, it probably would but when we did our loan application for some debts they weren't actually interested in the actual repayments but did their own calcs and so refinancing may not help. 

Hi, yes I’ll be half way through the agreement by December.

Ive just checked on the website and my settlement figure is £16k.
a figure I haven’t got at the moment given the expenses of a mortgage deposit etc. 

ok I will tell them its a PCP and see what happens.

honestly if I knew this was going to affect a mortgage application I wouldn’t have got it out. That’s a good
shout with we buy any car though! I will
give that a go! 

Only other thing I’m going to try is take on Saturday work each week. As that will bump me up and then hopefully I can keep the car too.

thanks for your advice. It means alot. 

Jsutherland7

So
I’ve just done a quote on we buy any car and it’s coming up 13k
my settlement figure is 16k.

so that’s 3k off. And that’s if we buy any car honour the quote. It’s in pretty good condition. So I stand a good chance. 

It’s one way of getting rid of the car I guess 

DullGreyGuy

Check Motorway and the other WBAC competitors, some may be close to the settlement figure. 

Jsutherland7 said:

DullGreyGuy said:

Jsutherland7 said:

DullGreyGuy said:

Jsutherland7 said:

my broker had said my £260 a month car finance payment is the cause of the problem.

I’m wondering what I can do here to either take the car back, for a price I guess,

or try and get the payments down by asking for more years and in return getting cheaper monthly payments (i.e £150)

it’s a 4 year contract and I’ll be at 2 years in December.

First of all you say its a lease and subsequently you say its on finance? Which of the two is it? Your options will be different if it’s a PCH/Lease or PCP/HP.

Thanks for quick reply! On my online account it just says 

Personal contract purchase Agreement.

its over 4 years. And then I have a 8k balloon payment at the end.

i was told i have the option to sell it privately or to a dealer mid term aswel. 

they sent me a logbook with my name on it when the deal went through. 

Could you tell with the information above what type it is?

if not I’ll call them tomorrow to find out

thanks 

So its a PCP (or HP with a balloon if you want to be technical) rather than a Lease; it does mean you probably have more options.

Firstly contact the finance company and get an early settlement figure, then check with the likes of We Buy Any Car and their competitors what the current value of the vehicle is so you can compare it to the debt. 

With an 8k balloon you are probably not half way through the total debt but if you were then a voluntary surrender is another option, check what the total repayable on the debt is and compare that to the total of payments to date. 

Tell your mortgage broker its a PCP not a Lease and see if you refinanced it over a longer term if that would make a difference, it probably would but when we did our loan application for some debts they weren't actually interested in the actual repayments but did their own calcs and so refinancing may not help. 

Hi, yes I’ll be half way through the agreement by December.

To be able to VT you need to have made half the total debt repayment not just be half way through chronologically. Because of the balloon it will typically happen later in the agreement but it does somewhat depend on the numbers. 

Jsutherland7

DullGreyGuy said:

Check Motorway and the other WBAC competitors, some may be close to the settlement figure. 

Jsutherland7 said:

DullGreyGuy said:

Jsutherland7 said:

DullGreyGuy said:

Jsutherland7 said:

my broker had said my £260 a month car finance payment is the cause of the problem.

I’m wondering what I can do here to either take the car back, for a price I guess,

or try and get the payments down by asking for more years and in return getting cheaper monthly payments (i.e £150)

it’s a 4 year contract and I’ll be at 2 years in December.

First of all you say its a lease and subsequently you say its on finance? Which of the two is it? Your options will be different if it’s a PCH/Lease or PCP/HP.

Thanks for quick reply! On my online account it just says 

Personal contract purchase Agreement.

its over 4 years. And then I have a 8k balloon payment at the end.

i was told i have the option to sell it privately or to a dealer mid term aswel. 

they sent me a logbook with my name on it when the deal went through. 

Could you tell with the information above what type it is?

if not I’ll call them tomorrow to find out

thanks 

So its a PCP (or HP with a balloon if you want to be technical) rather than a Lease; it does mean you probably have more options.

Firstly contact the finance company and get an early settlement figure, then check with the likes of We Buy Any Car and their competitors what the current value of the vehicle is so you can compare it to the debt. 

With an 8k balloon you are probably not half way through the total debt but if you were then a voluntary surrender is another option, check what the total repayable on the debt is and compare that to the total of payments to date. 

Tell your mortgage broker its a PCP not a Lease and see if you refinanced it over a longer term if that would make a difference, it probably would but when we did our loan application for some debts they weren't actually interested in the actual repayments but did their own calcs and so refinancing may not help. 

Hi, yes I’ll be half way through the agreement by December.

To be able to VT you need to have made half the total debt repayment not just be half way through chronologically. Because of the balloon it will typically happen later in the agreement but it does somewhat depend on the numbers. 

Hi, I just checked Motorway and it’s coming in at £14,125. 1k odd more.

also there was an option that asked if the car was finance. I clicked yes, and it said it can clear the agreement. Not sure what that ment. Have you used or are familiar with that? 

Herzlos

Jsutherland7 said:

Hi, I just checked Motorway and it’s coming in at £14,125. 1k odd more.

also there was an option that asked if the car was finance. I clicked yes, and it said it can clear the agreement. Not sure what that ment. Have you used or are familiar with that? 

It just means that if you sell the car to Motorway, they'll pay the finance company and give you any remaining balance. In this case you'd need to put money in. 


Given you'll still need a car, it may be worth seeing if you can refinance the PCP to something with a lower monthly outgoing. 

Jsutherland7

Herzlos said:

Jsutherland7 said:

Hi, I just checked Motorway and it’s coming in at £14,125. 1k odd more.

also there was an option that asked if the car was finance. I clicked yes, and it said it can clear the agreement. Not sure what that ment. Have you used or are familiar with that? 

It just means that if you sell the car to Motorway, they'll pay the finance company and give you any remaining balance. In this case you'd need to put money in. 


Given you'll still need a car, it may be worth seeing if you can refinance the PCP to something with a lower monthly outgoing. 

Hi
i Hope you are well,

the settlement figure is 16k
ghe quote on motorcar is 14k

do you know if the 2k can be paid off in installments or would they ask for it in one chunk?