Car finance and mortgage help

Jackallo61

Hello,

My partner and I are looking to buy our first home and have found the house that we want to buy. 

We will have around a £250,000 mortgage and were told we could borrow £350,000 in our mortgage in principle. 

The issue has arisen that the new build will be finished and ready to move in, in March, the same month my partners PCP car loan ends. 

My question is if she starts a new PCP car loan in the mean time will this affect our mortgage application. 

Her monthly payments will be the same on the car she has been looking at compared to now and we will be very comfortably be inside the affordability. 

One of the mortgage advisers have recommended if we can help it she shouldn’t do it, where as, another has told us as long as we are comfortably in the affordability it shouldn’t be an issue. 

The car is a necessity for work and we can’t buy a 2-3k banger because that money will be used for work. 

Does anyone have any experience or suggestions on as to whether this will affect our mortgage application?

many thanks, Jack

david29dpo

Only your lender can answer that question, all lenders are different.

Affordable now? What if interests rates go up, a lot?
What happens if everthings else goes up?
Will it be affordable then?
Just saying.

MEM62

Overall, PCP is a very expensive way of having a vehicle.  Many, when considering a new car, automatically link that with borrowing.  Keeping car payments around forever never made anybody rich.  

Jackallo61 said:

The car is a necessity for work and we can’t buy a 2-3k banger because that money will be used for work. 

In that case could her employer not consider providing one?  
    

[Deleted User]

Could you not pay the balloon payment and keep the car?