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    • Benj_Mellor1234
    • By Benj_Mellor1234 16th May 18, 12:57 PM
    • 1Posts
    • 0Thanks
    Benj_Mellor1234
    Monthly car insurance during mortgage offer period
    • #1
    • 16th May 18, 12:57 PM
    Monthly car insurance during mortgage offer period 16th May 18 at 12:57 PM
    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
Page 1
    • FTBNow
    • By FTBNow 16th May 18, 1:20 PM
    • 120 Posts
    • 78 Thanks
    FTBNow
    • #2
    • 16th May 18, 1:20 PM
    • #2
    • 16th May 18, 1:20 PM
    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.
    • poppy10
    • By poppy10 16th May 18, 1:45 PM
    • 6,037 Posts
    • 7,298 Thanks
    poppy10
    • #3
    • 16th May 18, 1:45 PM
    • #3
    • 16th May 18, 1:45 PM
    It won't be classed as finance. Lots of bills are spread over a twelve month direct debit
    • AnotherJoe
    • By AnotherJoe 17th May 18, 7:36 AM
    • 11,537 Posts
    • 13,364 Thanks
    AnotherJoe
    • #4
    • 17th May 18, 7:36 AM
    • #4
    • 17th May 18, 7:36 AM
    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
    Originally posted by Benj_Mellor1234
    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.
    • TrickyDicky101
    • By TrickyDicky101 17th May 18, 8:50 AM
    • 3,194 Posts
    • 2,105 Thanks
    TrickyDicky101
    • #5
    • 17th May 18, 8:50 AM
    • #5
    • 17th May 18, 8:50 AM
    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?
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