New car lease and mortgage

[hallion]

I'm planning on signing up for a Golf R lease this week. However I've just remembered my mortgage is up in December. I plan on remortgaging to a different bank as I want an offset mortgage. The car lease is easily affordable however I've read banks are more strict now so I don't want the lease affecting my chances of remortgaging.

When I sign up for the lease the lead time for the build is 4 months. Does the total lease amount show up in my credit file right away or just once I start making the payments? I can arrange the new mortgage up to 6 months in advance so just trying to plan application dates as best as possible.

Thanks!

[Sarnie]

The lease will only show on your credit file once you start paying for it.........but your mortgage lender will want to know if any of your details change after you've applied and before completion......and if they re-credit score you and see the lease on your credit file, their decision to lend may change............but, it all depends on the figures involved as a whole!

[hallion]

Sarnie said:

The lease will only show on your credit file once you start paying for it.........but your mortgage lender will want to know if any of your details change after you've applied and before completion......and if they re-credit score you and see the lease on your credit file, their decision to lend may change............but, it all depends on the figures involved as a whole!

Thanks Sarnie, that makes sense. Affordability is fine on my PAYE salary which I used for the mortgage in 2014 and also had a car loan for a similar amount so should be fine this time. A couple of questions though:

1. My wife is on maternity leave and is due back in September after 1 year off. She will have a couple of months full salary before completion and can provide pre-maternity salary slips as well. Would that be ok with most lenders?

2. I have fairly significant additional self employed income from an evening venture (that sounds dodgy but it really isn't lol) and can provide tax returns etc - would lenders usually consider PAYE + self employment income if affordability was deemed too low on PAYE?

Thanks,

Bob

[Sarnie]

hallion said:

Thanks Sarnie, that makes sense. Affordability is fine on my PAYE salary which I used for the mortgage in 2014 and also had a car loan for a similar amount so should be fine this time. A couple of questions though:

1. My wife is on maternity leave and is due back in September after 1 year off. She will have a couple of months full salary before completion and can provide pre-maternity salary slips as well. Would that be ok with most lenders?

2. I have fairly significant additional self employed income from an evening venture (that sounds dodgy but it really isn't lol) and can provide tax returns etc - would lenders usually consider PAYE + self employment income if affordability was deemed too low on PAYE?

Thanks,

Bob

1) yes, some lenders will use her income even on maternity leave if she has a return to work date and salary.

2) yes, but the amount taken by lenders will vary from lender to lender.

[hallion]

Sarnie said:

1) yes, some lenders will use her income even on maternity leave if she has a return to work date and salary.

2) yes, but the amount taken by lenders will vary from lender to lender.

Great, thanks Sarnie