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

[Percyp1g]

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.

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

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

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

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.