Car finance after new mortgage

Ronald Franz

Hello all,

We are buying a property soon that will leave us with a long commute. Given we will be paying less on mortgage than rent per month, I was thinking of putting some of the difference into a new car by means of finance after we draw down the mortgage.

Will the proximity of the car finance to the mortgage draw down make it difficult. In order of mortgage followed by car finance?

Our current car may not be the most reliable for long more.

Many thanks
Ron

Squiggle

Should make no difference with a clean credit record and repayments affordable.

Ronald Franz

Ronald Franz wrote: »

In order of mortgage followed by car finance?

So long as you do it that way, I wouldn't be concerned. You'll likely get approved on a car loan handy enough (unless you've set your eyes on a particularly expensive car).




Just make sure you don't go the other way, though, and go car first, then mortgage, as the repayments on the car will be taken into consideration and potentially used against you in regards to how much you can borrow for a house (as your car loan will have pushed your monthly commitments up).


I realise you may already know that, but worth pointing it out nonetheless.

Smee_Again

I was approved for a PCP finance a few months after drawing down a mortgage.

I was a similar to you, just bought but had a longer commute so wanted a more reliable car.

Ronald Franz

Thanks for all the replies. That is good to know.

Smee_Again

Smee_Again wrote: »

I was approved for a PCP finance a few months after drawing down a mortgage.

I've yet to hear of someone not being approved.


I went to my local Nissan Dealer, and went for a quick spin in a car. Before i went on the test drive, they took a few quick numbers off me. No bank statements or anything official. Just a verbal "I make X amount".


When I came back from the test drive, about 5-10 minutes later, they'd approved me, and I practically had to run away to avoid buying the car. And boy, oh boy, did they make sure to ring me every single day for a fortnight afterwards.




So based on my experience, I don't think anyone will have difficulty getting a car after a mortgage.


I would say, though: keep in mind we're still just a decade out from people who got too big for their boots losing everything. I still see repossessed houses popping up for sale. Just because you can buy a new car, doesn't mean you should. I'd try to get a fair few months of mortgage payments made first, to make sure you're comfortable adding another bill to your monthly outgoings.

Smee_Again

Deleted User wrote: »

I've yet to hear of someone not being approved.


I went to my local Nissan Dealer, and went for a quick spin in a car. Before i went on the test drive, they took a few quick numbers off me. No bank statements or anything official. Just a verbal "I make X amount".


When I came back from the test drive, about 5-10 minutes later, they'd approved me, and I practically had to run away to avoid buying the car. And boy, oh boy, did they make sure to ring me every single day for a fortnight afterwards.




So based on my experience, I don't think anyone will have difficulty getting a car after a mortgage.


I would say, though: keep in mind we're still just a decade out from people who got too big for their boots losing everything. I still see repossessed houses popping up for sale. Just because you can buy a new car, doesn't mean you should. I'd try to get a fair few months of mortgage payments made first, to make sure you're comfortable adding another bill to your monthly outgoings.

All fair points and I didn't actually go through with the purchase at the time, and like you I was hounded by the dealership.

Though when one of our cars went up in flames a few months later I did go the finance route on a new EV. I worked out that fuel, tolls and servicing costs were roughly equal to the cost of finance and depreciation, while the increase in monthly bills was worth it for peace of mind of not having to dip into the second hand market.