Remortgaging soon - PCP/Loan question...

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SPD14
SPD14 Posts: 8 Forumite
in Mortgages & endowments
Hi,

In May, my wife and I will be looking to remortgage and free-up some capital for a house extension/renovation.

The house is worth approximately £340k and we've currently got an outstanding mortgage of £203k.

I currently have a PCP car which has £13k left on the finance, and as the 3 year PCP ends shortly, i'm wanting to take out a loan of £13k to purchase the car outright.

The question is - will replacing the PCP debt of £13k and approx £300pm with a personal loan debt of £13k and approx £290pm be in any way detrimental to the forthcoming remortgage application?

My wife is worried whereas I can't see it being an issue at all. Who's correct, or are we both wrong?

Thanks!

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  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
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    If you don't purchase the PCP vehicle. Presumably you would need finance to acquire something else. You'd still have an outgoing. How much it is will determine the impact on affordability.
  • SPD14
    SPD14 Posts: 8 Forumite
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    Correct.

    I’m in a position where I have to deal with it one way or another.

    The car PCP runs out before we need the remortgage, so I believe the best option is to purchase the car via a loan.

    If I had cash I’d use it, but unfortunately I don’t.
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