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Car Finance Expert Q&A

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Edwin Miles. Underwriting Manager

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Can i get a car loan with mortgage arrears?

Hi, our current car has broken ( cambelt has gone ) so i am going to need to buy another car for work but i am on debt management plan and slightly in arrears with my mortgage but hoping to sort that one out soon. Will i be able to get a loan for a car?

Posted by Pam jacobs on

Answer.

Hi Pam, we do have lenders that could potentially help you obtain a car loan even though you have mortgage arrears but for me to be able to give you a definitive answer i'd need to be able to see your credit profile to see what condition your other credit accounts are in. Do you have a deposit, are you on the electoral roll and can you provide wage slips from your current employment? Edwin

Posted by on
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Question.

hi, i probably don't have a deposit, only what the scrap value of the car is. Yes i am on the electoral roll and am self employed so have accounts that go through an accountant.

Posted by Pam Jacobs on

Answer.

Ok Pam, no problem regarding the deposit. Please make an application so we can view your credit file and try our best to get you approved. Edwin

Posted by on

Question.

I've been in continuous mortgage arreas for a long time. I'm self employed with 2k month wage. I'm looking for 10k with 5k deposit. Is this possible?

Posted by Charlie on

Answer.

Hi Charlie, Thank you for your question. We do deal with most lenders currently on the market and it may be possible to place you with one of them given your circumstances. It would depend on how many payments you are down. If it is 6 then unfortunately we would struggle to gain you an approval as you are seen as high risk. However in order to give you a definitive answer we would need to see an application to assess any other credit accounts you may have. It may help if you have a deposit available. I hope this is of help to you. Kind regards, Edwin

Posted by on

Question.

Mortgage arrears are at 2 but have been 5 for 1 month in last 6 months and continuous for 3 years on file. No other credit apart from bank account which is fully clear for 5 years. I have a 5k deposit looking for 10k.

Posted by Charlie on

Answer.

Hi again Charlie, Ok on a positive note your credit profile will show that you are trying to improve your credit and are getting up to date on your mortgage. Please put an application through when you are ready and we can try our best to help you. Thanks Edwin

Posted by on

Question.

Hi Edwin, I have had some bad credit history in the past. I have 1 default that is 6 years old this month (fully paid) and another default that is just under 5 years ago (fully paid). Other than this the last 3 years I haven't missed a payment on loan / card etc. I still have a joint mortgage with my ex-wife and have just been informed by the mortgage provider that she hasn't made any payments for 4 months. I have spoken to the bank and my ex-wife and this has been sorted out to repay the arrears over the next few months. I am looking to borrow 10k - 15k, have a 2k - 3k deposit, take home £1700 net per month, am on the electoral role. Would I be best to pay off the mortgage arrears using some of the deposit before applying? What do you think my chances are of being accepted? Kindest regards, Steve

Posted by S Cotton on

Answer.

Hi Steve, there is every chance we can get you approved as we can explain the recent missed payments on your old mortgage. Also as your past defaults are 5-6 yrs old and your last 3 years credit history has been clean this will help. Your income is decent and you have a large deposit so i'm confident we can help. Please apply when you can. Have a good evening. Edwin

Posted by on

Question.

Can I get a car loan shortly after taking out a first time buyers mortgage? We are due to complete on our mortgage in the next couple of weeks and once that is done I want to buy a car on PCP.

Will taking out a mortgage reduce my chances of getting car finance? Am I better leaving it a few months until a couple of mortgage payments have come out before I take on car finance? Thanks

Posted by Victoria brumby on

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