PCP / Finance - effect on getting mortgage

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Hi All,

Quick one for you folk in the know.

I've been a Director of my own limited company since September 2014.

Financially, things are going well and I'm happy with the growth and what we've done during that time.

We are looking at purchasing a new house back end of this year, and speaking to various people, it looks like I'm going to need a minimum of 2 years worth of company accounts, showing good growth/turnover/profits/dividends. This shouldn't be too much of an issue (albeit I'm only just finalising Year 1 accounts) as my Year 2 records are tip top and updated immediately and my accountant is aware of our plans. I do appreciate though that a Year end of 30/09/16 won't instantly mean accounts available on 01/10/16!

So hopefully by back end of the year everything will be ok. We've no other debts other than the current mortgage (which is almost in 50% positive equity) and our credit rating appears to be excellent.

HOWEVER, to throw this into the mix:

If I were to take out PCP or HP on a new car over the next few months, perhaps for the car being delivered in early September, would this cripple/seriously hinder any chances of a mortgage?

Any advice greatly appreciated.

Thanks.

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Thanks Sarnie.

One thing a sales guy said to me at weekend was, was that a £2k deposit on a £20k car was a good amount of equity for the finance firm to have. As such, they wouldn't credit check me and it wouldn't appear on my record as it didn't need to be secured lending on anything other than the car as they'd have so much money in it if I defaulted. Was I right to instantly assume that this was a load of bull poo to get me to buy a car (which I obviously didn't!)?

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walm said:

Can you put it off until then?

Probably.

Current car is 10 years old this year - so it's not like i've always got to be driving the latest model! A/C doesn't work properly. Looked like i'd been swimming the other week when i got out of it on a warm day.

On 85k but loads of life left in it yet. I'm thinking myself that i can wait a while.

Plus, house move - shifting boxes, seats down, stuff to the tip etc - may as well do it in the older car.

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Sarnie said:

I find it unbelievable that in 2016 there are people out there able to give Financial Advice based lieterally on a bed of lies...........

And you know - this particular chap sold my wife a car last year - cash deal - and did a decent job. To the point i've been back to him to discuss options for me a couple of times since. He knows i'm only looking and won't sign there and then, at the moment anyway.

However, on Sunday he offered me a deal with PCP @ £352 a month over 36 months. Then said to 'hold on, i'll just speak to the Business Manager because that's with Lender A and Lender B now do offers on that particular car for us'. He stood up, turned his back to me they whispered amongst themselves. In that time, the power of 4G had quickly revealed that i could get a bank loan for nearly £80 a month cheaper than their HP offer (£540 a month). Then said business manager comes back 'Good news, we can get it down to £302 a month. [long pause, quiet voice] over 48 months'.

I like the sound of paying £1824 more!!

Needless to say, it's put me off them slightly. For cash purchases they're great - but their finance looks to be a bit of a money-spinner. (Appreciate that lenders need to make money and fully acknowledge that mind, but there are limits to what folk should be able to do). Someone with half a brain could end up in some serious money trouble with offers like that!