Business leasing and credit searching?

[stabilio]

I'm looking to get a company car on a business lease (Limited and VAT registered company) but at the same time in the early stages of getting a mortgage.
I've had a pass on the mortgage with a decision in principle and the broker has told me not to apply for any credit (personally) until the mortgage is completed and the house buy finalised.

Trouble is, were moving out of town and need the second car so both my partner and I can come and go.

If I were to get a company car, do the dealers do a credit search on myself - or just my company - or both?
I can't risk anything going wrong on the mortgage but at the same time, need to order a car as it could take a month or so to be delivered.

[P-Jay]

Way back in 2009 when I worked in finance we'd search the company and the directors - the finance will be recorded in the Company name unless they want DGs. These used to be unrecorded, AKA you wouldn't get a 'hit' on your file - but no new credit will find its way into your file, unless they specifically ask you to guarantee it.

[stabilio]

P-Jay said:

Way back in 2009 when I worked in finance we'd search the company and the directors - the finance will be recorded in the Company name unless they want DGs. These used to be unrecorded, AKA you wouldn't get a 'hit' on your file - but no new credit will find its way into your file, unless they specifically ask you to guarantee it.

Many thanks. So you're saying even if they search on the director (IE: me), it'll only be a 'soft' search and nothing will show on my personal credit file in the form of searches or actual new credit providing im not a guarantor on the car?
I really don't want to bugger the mortgage up!

[P-Jay]

stabilio said:

P-Jay said:

Way back in 2009 when I worked in finance we'd search the company and the directors - the finance will be recorded in the Company name unless they want DGs. These used to be unrecorded, AKA you wouldn't get a 'hit' on your file - but no new credit will find its way into your file, unless they specifically ask you to guarantee it.

Many thanks. So you're saying even if they search on the director (IE: me), it'll only be a 'soft' search and nothing will show on my personal credit file in the form of searches or actual new credit providing im not a guarantor on the car?
I really don't want to bugger the mortgage up!

That's how it was with RBS in 2009, I can't guarantee anymore than that, but I'd bet on it being the case now.

[rfoster]

I'm in this business still - if you're looking to take on a car in the company name (and you're a director of the company) then the leasing company will most likely run a search on the company directors - though this does depend on which finance company the car would be leased through.

Having a car leased through the company shouldn't have an effect on your affordability as far as the mortgage is concerned - the car would be paid for and leased through the company, and you'd be signing the finance agreement on behalf of the limited company.

Worth discussing this scenario with your mortgage broker, or ideally the lender directly to clarify, but I don't foresee a problem there.

Cheers, Richard.

[kiethton]

In the worst case could you just get yourself a <£500 shed to tide you over? - in your own name paid cash

Would double as a loadlugger/tip runner/decoration tool if you choose right also (especially if the new place needs any work)