Mortgage Application - Personal Loan vs PCP

[Dimebars]

We may be in a position to move shortly and am now starting to think about mortgages

The fly in the ointment is my monthly car payment. Current car is due to go back (VT) and will need replaced. I can do without a replacement short term, but probably not to coincide with mortgage applications/drawdowns/completions

Usually, I'd PCP whatever I'm buying, but I'm considering a personal loan instead this time to save a little on interest etc

My question is how do mortgage companies view a personal loan vs a PCP? Is there a difference<? Is one "preferable" to the other? Or are they both just classed as debt/payments and mortgage offers reduced accordingly?

[Sarnie]

Dimebars said:

We may be in a position to move shortly and am now starting to think about mortgages

The fly in the ointment is my monthly car payment. Current car is due to go back (VT) and will need replaced. I can do without a replacement short term, but probably not to coincide with mortgage applications/drawdowns/completions

Usually, I'd PCP whatever I'm buying, but I'm considering a personal loan instead this time to save a little on interest etc

My question is how do mortgage companies view a personal loan vs a PCP? Is there a difference<? Is one "preferable" to the other? Or are they both just classed as debt/payments and mortgage offers reduced accordingly?

All they are concerned about is the size of the monthly payment.........

[Dimebars]

Thanks Sarnie, that's what I needed to know

[DiscoSINGH]

To a mortgage lender car finance is car finance which will affect your mortgage affordability. HP agreements, PCP's, Bank loan repayments - all affect how much a lender is willing to lend.

[Daveb257]

Alternatively lease something, they are (mostly) underwritten on the basis of the advance not the car price, so ineffective the sun of the rentals and IIRC your credit file would show the same figure therefore less of an exposure

[Welshbeef]

Or offload PCP and run a shed£1k car until mortgage is approved get the house - then who knows circumstances change and you buy what you want. .....