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Will a car HP agreement effect how much I can borrow for a mortgage

(5 Posts)
Percyp1g Sat 17-Dec-16 18:47:48

I bought a car on hire purchase agreement 4 months ago. The agreement is for 2 1/2 years. My circumstances have changed however, and now I would like to consider buying my first home within the next 6 months. My question is, will my HP agreement effect how much I can borrow for a mortgage? I would easily be able to afford repayments. The HP agreement is flexible, and I could pay less per month over a longer time if I really had to.

Leatherboundanddown Sat 17-Dec-16 18:49:04

Yes it will affect it in terms of your monthly affordability as the payment will be included in your outgoings.

Costalot1 Fri 23-Dec-16 22:55:28

You're probably better off reducing the monthly expenditure to borrow a larger amount for the house

Thegreatunslept Fri 23-Dec-16 23:00:27

It will we cannot buy s house at the minute because of hire purchase on s car. In a years time when car is paid off we will be able to get a big enough mortgage but with the hire purchase it has really brought down the amount the bank will lend us confused

samcroreaper Tue 27-Dec-16 18:34:31

Yes it will affect it the amount you can borrow. Mortgage lenders have a duty to 'stress test' your finances now, taking into account your other financial commitments.

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