To upgrade my car

[beepbeeps]

I need my car for commuting, it’s 10 years old and has about 50k miles on the clock so low mileage but it’s only a very small 3 door and I would prefer something a bit bigger almost to feel safer.

We were trying to buy a house and I figured out I would just take a bank loan out once we had exchanged contracts and moved into our house, as not to affect mortgage affordability. After much deliberation we are now holding off from housebuying because of the current rates and our low deposit, plus we pay less in rent

Would it be stupid to take out a small car loan soon if we’re hoping to buy a house when prices come down (2025 ish)

Seems silly to spend money when there's nothing wrong with your current car. You could save that money towards a bigger deposit when you find a house you like which will make your LTV ratio lower. If something goes wrong with the car before then, you've got savings to put towards it

That’s true, I do want a new one but suppose that’s a want rather than a need

I don’t know why but being in a tiny vehicle makes me feel less safe!

We took out a bank loan for car the month before applying for our mortgage. Mortgage advisor said it would be fine as we took a long repayment term to lower monthly payments. If it will make your commute easier and you can afford it, why not.

Would selling your car and buying something else with the money, and maybe a small loan, be an option?
10 years old and 50k miles is potentially a reasonable chunk of a bigger, second hand car. If it's a small loan amount you could realistically pay it off before buying a house.