New mortgage and new car

TempestInAFlatHat

Hi all. I need a bit of advice on mortgages and car finance.

I currently live in an area where a car isn't necessary, and I'm planning to buy a house in a place where a car definitely is necessary (I've had cars before, I'm not looking for advice on that, I have just done without for a few years to help with saving for a deposit).

I understand of course that the mortgage amount a lender considers affordable will be reduced if I'm also paying back finance for a car. That's not a problem - the house I'm looking to buy is well within my budget and the drop in affordability isn't going to make any difference in that respect.

What I'd like to ask is whether this is going to be a problem for any reason beyond affordability. If I'm starting repayments on car finance at the same time as starting a mortgage, will this raise red flags anywhere? I know that multiple new accounts on your credit history in a short time can be an issue.

And would the timing change anything? Would I be better off buying the car after the house buying process has completed, or indeed before it's even started? Or does none of this really matter, so long as they consider I can afford it (and again, I absolutely can, that's not an issue)?

By the way, I know there's an option of buying a banger for a hundred quid and not having anything on my credit history at all, but ideally I'd rather not go down that road if I don't have to!

Many thanks.

Myci85

Personally, I'd avoid applying for anything on credit whilst applying for a mortgage, just in case. Whether that means you wait until completion and then apply for a car on finance, or you go the old banger route for a few months.

michael1234

https://forums.moneysavingexpert.com/discussion/comment/81890172#Comment_81890172

+1

TempestInAFlatHat

Thanks both. That seems very sensible.