Advice re finance

[Gcixxer]

I'm new to this forum but this is right up my street. I am a business manager (finance and insurance) with skoda and VW. I suggest you drop me a pm with your details, the car and I will get you a settlement and see how I can help. I need GTIs as used stock as they're great news on the forecourt so I will pay top dollar for it and I'm sure I can sort you out another car for a lower payment, it probably won't be a GTI but I suggest you sort your house before your car. 

[dubber36]

Why are people so keen to get you dripped up on another car, albeit with lower monthly payments? As someone said earlier, it's just rolling one debt into another, so not addressing the issue at all.

I'd go with the suggestion of getting a much older, cheaper car that you can pay cash for. An older car needn't cost much to maintain / repair as keeping it in as new condition will not make it worth any more money. Just put up with the odd rattle and ignore the minor scuffs and dings.  I'd buy a Mk4 GT TDI for £2000, drive around in it until you have a more stable financial footing, then sell it for £2000. Motoring doesn't get much cheaper. It all depends if you are the sort of person that is prepared to do the practical thing, or you have to be seen to be driving a flash car to make it look like you are doing well.

[Misterp]

Whilst it might not be the best option have you tried speaking to the house builder/developer to try and negotiate a discount there or possibly speaking to a different mortgage lender. I'm a property lawyer (albeit commercial property) but I have contacts who may be able to assist.

Whilst I think your on the right track by offloading the gti, that 3k maybe saved elsewhere bringing down your initial outlay so long as the developer incentivise your discount it will not have a detrimental effect on your mortgage LTV

[Darlo]

Why are people so keen to get you dripped up on another car, albeit with lower monthly payments? As someone said earlier, it's just rolling one debt into another, so not addressing the issue at all.

I'd go with the suggestion of getting a much older, cheaper car that you can pay cash for. An older car needn't cost much to maintain / repair as keeping it in as new condition will not make it worth any more money. Just put up with the odd rattle and ignore the minor scuffs and dings.  I'd buy a Mk4 GT TDI for £2000, drive around in it until you have a more stable financial footing, then sell it for £2000. Motoring doesn't get much cheaper. It all depends if you are the sort of person that is prepared to do the practical thing, or you have to be seen to be driving a flash car to make it look like you are doing well.

Thanks for your post. Maybe I havent made myself clear, my heads been spinning with this all week!! Paying for the house & car combined when ready will not be a problem. Its how the monthly is effecting my borrowing power/LTV. So its all very well saying buy a car for a couple of grand, but as I have already explained the car if sold will clear finance with not a lot left over. So if im finding £2k for half decent car i may as well find another £1k for the deposit and keep the GTI if that makes sense.

Whilst it might not be the best option have you tried speaking to the house builder/developer to try and negotiate a discount there or possibly speaking to a different mortgage lender. I'm a property lawyer (albeit commercial property) but I have contacts who may be able to assist.

Whilst I think your on the right track by offloading the gti, that 3k maybe saved elsewhere bringing down your initial outlay so long as the developer incentivise your discount it will not have a detrimental effect on your mortgage LTV

The problem with builder discount is that mortgage companies just reduce the value of the house by the amount they discount. So in my case I have opted for upgrades (granite/appliances etc).

I have been lucky with my mortgage advisor and he has looked at every option including different lender. It is a balance however between rates/fees. Other lenders will happily lend me off my last two year p60's and I would not be in the situation but their rates are significantly higher. The lender I am with is only using last three months payslips and due to leave and courses at work my overtime has been reduced only slightly but enough for them to slightly reduce what they will lend me.

Thank you for your offer re your contacts. I will see how things pan out and maybe in touch.

Cheers

Paul

[monkeyhanger]

Don't forget to consider affordability for the car and house combined if the mortgage rates go up - they keep saying they'll be up within a year. 3% rise on a £120k mortgage will leave you with at least another £140 a month to find.

[Misterp]

MH is right the issue with mortgage lenders now is the new stress tests.

Dependent on your rate a one percentage rise could increase your monthly payments by 70-120 quid. Unless you fix your rate.

Finally if you mange to beg with the developer there is away where the price stay the same but they incentivise the discount your lender is informed and it does cause an Issue with ltv.

Like others have said it's an affordability thing. You need to know that you can afford both so long as you can your ok.

[mcmaddy]

Darlo you said about your overtime not being included due to holidays but if it's contractual overtime it should be included anyway. If it's non contractual the mortgage people probably won't be looking at it as guaranteed salary so just your basic salary will be used.

[Darlo]

Thanks for your posts. I have got a very good rate as I have a decent deposit and it will be fixed for a two year period.

My overtime is not contractual unfortunatley, it is consistant however! They will only use 50% of my overtime in my application with this particular company.

[monkeyhanger]

I used to do loads of overtime until I got promoted - my basic went up 20% and my overall pay went down 15%.