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Personal guarantor for business car lease, will it affect mortgage borrowing?

cereal_beast
cereal_beast Posts: 3 Newbie
First Post
in Mortgages & endowments

I'm a partner of an LLP and looking to lease a car through the business. The leasing company just told me that I have to agree to be a personal guarantor for the lease but I'm concerned that this would show on a remortgage application as monthly expenditure and significantly affect the amount I can borrow.

I can't find anything about this online so just wondered if anyone has any information on this? Obviously I'm hoping that being a personal guarantor will have no affect at all on my mortgage but want to get a clearer idea before committing to the lease.

Comments

  • HobgoblinBT
    HobgoblinBT Posts: 345 Forumite
    Fifth Anniversary 100 Posts

    What did the leasing company say when you asked them?

  • cereal_beast
    cereal_beast Posts: 3 Newbie
    First Post

    They have no idea, just that its required. I assume this would be a question more for a mortgage advisor rather than the leasing company?

  • kingstreet
    kingstreet Posts: 39,444 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic

    I would shortlist the likely lenders and ask each one individually. In the past, we've asked lenders to ignore business commitments in the individual's name on the justification the cost is met before the applicant's income is calculated. An Accountant's confirmation is often required.

    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • cereal_beast
    cereal_beast Posts: 3 Newbie
    First Post

    Yeh good idea, if I were to remortgage with my current lender (HSBC), I assume it wouldn't be an issue at all as they wouldn't do any affordability checks?

  • Yorkie1
    Yorkie1 Posts: 12,658 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    https://forums.moneysavingexpert.com/discussion/comment/81949260#Comment_81949260

    If you do a product transfer then no, there are no checks.

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