At what point in Morgage process can I finance a car?

[JQ]

Got a full mortgage offer through today for a new house purchase which is subject to survey, happening next week. The loan is comfortably within affordability ratios and there’ll be no issue with the survey.

However, the application was made on the basis that we don’t have any outstanding finance on anything, which currently we don’t Sod’s law and there’s a good car lease deal appeared that i’d like to investigate, possibly take out. Would taking finance (PCH) out next week on a £36,000 car cause any issues with the mortgage?

[RobXjcoupe]

Probably if you have a maxed out a mortgage

[JQ]

RobXjcoupe said:

Probably if you have a maxed out a mortgage

Why?

[guitarcarfanatic]

Because the affordability scale they used is based on what you put on the form. Another few hundred a month out = they lend you less.

Safer way is to wait for the mortgage to complete and then do it - unlikely to be audited post offer but would be gutting if you were.

[Sarnie]

JQ said:

Why?

Because your circumstances will have changed........you said you had no commitments......now you will, once you take out the finance............the lender will want to reassess the application.......it might still fit............or it might not.......

[James_B]

JQ said:

Got a full mortgage offer through today for a new house purchase which is subject to survey, happening next week. The loan is comfortably within affordability ratios and there’ll be no issue with the survey.

However, the application was made on the basis that we don’t have any outstanding finance on anything, which currently we don’t Sod’s law and there’s a good car lease deal appeared that i’d like to investigate, possibly take out. Would taking finance (PCH) out next week on a £36,000 car cause any issues with the mortgage?

Yes, it absolutely could. Why would they ask about your debt if it did not matter?

Don’t take any loans out until you have completed.

[vindaloo79]

JQ said:

Would taking finance (PCH) out next week on a £36,000 car cause any issues with the mortgage?

When i had a lease on a £28k car it showed as a £7.25k debt on my credit file.

I'm in a similar position now and deciding to hold out on the completion date before would jump into a new credit agreement.

[JulianPH]

Sarnie said:

JQ said:

Why?

Because your circumstances will have changed........you said you had no commitments......now you will, once you take out the finance............the lender will want to reassess the application.......it might still fit............or it might not.......

Listen to Sarnie, he knows this inside out.

[JQ]

Cheers for the comments.

My main concern was timing but as the vendor announced last night that they’re going on holiday for 2 weeks and won’t let the valuer inspect unaccompanied nothing will be happening any time soon. I’ll let the bank know about the car and let them re-do their calculations, as said affordability won’t be an issue and 2 weeks should be enough time to sort.

[Deesee]

Wait until your in

Then wait until you start seeing what needs to be done

Then re assess when the other half weighs up a redec and new kitchen

Then see what works for you on the car side

Good luck on the move

[Killer2005]

JQ said:

Cheers for the comments.

My main concern was timing but as the vendor announced last night that they’re going on holiday for 2 weeks and won’t let the valuer inspect unaccompanied nothing will be happening any time soon. I’ll let the bank know about the car and let them re-do their calculations, as said affordability won’t be an issue and 2 weeks should be enough time to sort.

I'd wait until after you were in. If it does affect affordability significantly and you decide not to go ahead with it it could cause delays.

[LittleBigPlanet]

Deesee said:

Wait until your in

Then wait until you start seeing what needs to be done

Then re assess when the other half weighs up a redec and new kitchen

Then see what works for you on the car side

Good luck on the move

This.

There is a good deal now but there might be an even better deal in a few month's time.

In any case, wait. You'll thank yourself that you did. New homes throw up all sorts of bills (source: moved in Dec 2017).

[Craikeybaby]

Or get the car before your other half spends the money for it...

[JQ]

Craikeybaby said:

Or get the car before your other half spends the money for it...

Don't worry, there's a £75,000 budget for work to the house, which should keep us both busy for a while. Anyway, told the bank about the car and all was good, had no impact on the mortgage offer, went to see the car and Mrs JQ hated it, so that's the end of that. Although I do agree with her - a 2 Series Tourer ain't going to win any design awards.

Looking at secondhand cars again now unless another stonking lease deal comes up - MINI JCW, Fiesta ST Mountune and GT86 all look appealing.

[Shaoxter]

Let me get this straight, you were going to risk your mortgage offer for a 2 Series Active Tourer? And £36k???

[JQ]

Shaoxter said:

Let me get this straight, you were going to risk your mortgage offer for a 2 Series Active Tourer? And £36k???

Mortgage was never at risk as affordability was never an issue, timing was.

But yes a 2 series is pretty embarrassing, it's one fugly car. However £225pcm for an 18 month lease on a plug-in hybrid which would get charged at work (zero fuel costs) would be quite nice for little while. Plus I don't really care what other people think, otherwise I'd be chucking £700pcm into a company car like all my colleagues. In all honesty I'd have got the car if the wife hadn't put her foot down, my current Volvo is returning 16mpg and I quite liked the idea of an electric car - 4wd, 225bhp and 6.7 to 60 with no tax or fuel costs. If I'd hated it, it would have been gone in 18 months anyway.