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Monthly car insurance during mortgage offer period
Benj_Mellor1234
Posts: 1 Newbie
Hi,
My wife & I have exchanged contracts on a new build with approx completion this August. My car insurance renewal is due next week, and due to us saving as much as we can for the house, paying upfront this year is not really an option so was considering paying monthly (paid in full last year so mortgage application wasn't based on me having a DD plan for insurance). I am worried that by doing this, the pay monthly will be classed as finance and may have a negative effect should my proposed lender do a pre-completion credit check. I don't want to do anything that could jeopardize my offer especially as we have exchanged contracts.
Am i worrying for nothing?
Many Thanks
My wife & I have exchanged contracts on a new build with approx completion this August. My car insurance renewal is due next week, and due to us saving as much as we can for the house, paying upfront this year is not really an option so was considering paying monthly (paid in full last year so mortgage application wasn't based on me having a DD plan for insurance). I am worried that by doing this, the pay monthly will be classed as finance and may have a negative effect should my proposed lender do a pre-completion credit check. I don't want to do anything that could jeopardize my offer especially as we have exchanged contracts.
Am i worrying for nothing?
Many Thanks
0
Comments
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Worrying for nothing. I pay my car insurance monthly and it wasn't classed as finance: I made space for it in my travel expenses in the mortgage application.0
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It won't be classed as finance. Lots of bills are spread over a twelve month direct debitpoppy100
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Benj_Mellor1234 wrote: »Hi,
My wife & I have exchanged contracts on a new build with approx completion this August. My car insurance renewal is due next week, and due to us saving as much as we can for the house, paying upfront this year is not really an option so was considering paying monthly (paid in full last year so mortgage application wasn't based on me having a DD plan for insurance). I am worried that by doing this, the pay monthly will be classed as finance and may have a negative effect should my proposed lender do a pre-completion credit check. I don't want to do anything that could jeopardize my offer especially as we have exchanged contracts.
Am i worrying for nothing?
Many Thanks
Not at all. If you are so tight on money that a known (what? £300-£400 )one-off bill is unaffordable, you have over extended yourselves and any unplanned expenses (quite common when you are a home owner) could cause serious issues.0 -
I guess it might be pertinent to know how much the one-off insurance cost is likely to be? Are you talking £'000s rather than £ hundreds?0
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