Mortgage and buying a car - bad idea?

Grace0508
Grace0508 Posts: 1 Newbie
in Mortgages & endowments
Hi there, we are in the process of buying our first home. We have had an offer accepted and a mortgage offered. We also need to buy a car, we have enough cash for both our deposit and the car. But I am concerned taking such a large amount out of the accounts before we have completed on the house might have an adverse effect on the mortgage?

Comments

  • Dean000000
    Dean000000 Posts: 612 Forumite
    Sincere advice. Get your mortgage, then your car, in that order.

    Why risk it is my view....

    It could well affect it yes - especially if there is a long period between offer and actual transaction.
  • ScoobyZ
    ScoobyZ Posts: 487 Forumite
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    Agree, I knew someone that messed up their mortgage when they bought a sofa on 12 months interest free credit.

    It was on a second home that they planned to buy and sell their first home (sort of a bridging loan) and they eventually paid the sofa off to get their monthly payments down but by the time it was sorted house had sold.
  • phillw
    phillw Posts: 5,594 Forumite
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    Grace0508 wrote: »
    Hi there, we are in the process of buying our first home. We have had an offer accepted and a mortgage offered. We also need to buy a car, we have enough cash for both our deposit and the car. But I am concerned taking such a large amount out of the accounts before we have completed on the house might have an adverse effect on the mortgage?

    If you've already shown them your bank statements then I doubt they'll look again. Buying a car for cash won't affect your credit file.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    phillw wrote: »
    If you've already shown them your bank statements then I doubt they'll look again. Buying a car for cash won't affect your credit file.


    Yep, they only look again at a small number so the "doubt" is correct.

    Of course, for that small number they do look at who are taking on an extra loan, for some of those they will rescind their offer.
    A chance worth taking OP?
    I suggest not.
  • phillw
    phillw Posts: 5,594 Forumite
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    AnotherJoe wrote: »
    Of course, for that small number they do look at who are taking on an extra loan, for some of those they will rescind their offer.
    A chance worth taking OP?
    I suggest not.

    They have clearly said they aren't taking out a loan to buy the car.
    Grace0508 wrote: »
    We also need to buy a car, we have enough cash for both our deposit and the car.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    phillw wrote: »
    They have clearly said they aren't taking out a loan to buy the car.


    My bad.

    In that case its much better however I still wouldnt take the chance personally, its still a big spend that might cause the lender to have second thoughts. For the sake of a few weeks why take the risk.
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
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    Did you use a broker? if so get them to check over the figures for you to see if it will affect things. Otherwise, speak to lender to clarify the position.

    Don't do anything on an assumption, assumption is the mother of all "mess ups"
    I am a Mortgage Adviser

    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.
  • phillw
    phillw Posts: 5,594 Forumite
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    AnotherJoe wrote: »
    its still a big spend that might cause the lender to have second thoughts.

    I haven't had to go through affordability checks since they came in, do they monitor what you're spending your money on?
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
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    phillw wrote: »
    I haven't had to go through affordability checks since they came in, do they monitor what you're spending your money on?


    Probably referring to pre completion checks some lenders carry out - although I've never known a lender to question reduction in savings unless it affects the mortgage deposit or stamp duty
    I am a Mortgage Adviser

    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.
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