Remortgage for classic car purchase

rolandpull · 21 October 2019 at 10:56PM

I have done a reasonable amount of research and just wanted to run it through here.

I was widowed a few years ago and due to various life insurance policies have almost paid off my mortgage in full. However, I would like some fun and want to buy a semi-classic car for £70,000. I would plan to enjoy this for 2 years and then sell and put the money back onto the house. My LTV would subsequently be only 17% and I could afford the additional payments. This seems the cheapest way of paying for the car.

I am presently with Barclays, but it seems a remortgage to a different provider would be the best way forward (I'm assuming I need to mention the car)? Are there any particular providers who would be best, if they can be mentioned on here?

Many thanks for any assistance.

foxy-stoat · 22 October 2019 at 10:44AM

Speak to your existing lender first, they may be ok with pulling the equity you have been overpaying to buy a car, as long as the affordability is ok.

Speak to a broker, if Barclays say no.

rolandpull · 22 October 2019 at 9:13PM

Many thanks.

That sounds like a sensible way ahead.

tacpot12 · 22 October 2019 at 9:36PM

Of course, there is a risk that if the value of the car falls substantially, possibly for reasons that cannot be insured against, you might struggle to pay your mortgage off.

£70,000 seems a lot for an old car. (I paid £700 for my current car). Could you not have just as much fun in a cheaper classic? Something like a Rover P6 or Triumph Stag?

TBagpuss · 23 October 2019 at 1:14PM

You mention that you LTV will 'subsequently' be 17% - do you mean after you borrow the extra or after you pay it back? If fter you pay it back, wjat will it be with the extra borowing?

I would thin kthat assuming you still have plenty of quity, they aren't goingto care much why you want the money, tye will be looking at whether you can afford the repayments , assuming that you don't, for whatever reason, sell the car on or get back as much as you paid.

Remortgage for classic car purchase

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