[savgeax]

Does anyone know what the deal is with vehicle leasing and a mortgage application?

If you take out a loan then its going to show up on your credit report as a debt.

If your vehicle leasing, its technically not a debt so does it show up on your credit report at all?

I am due to re-mortgage and wonder where the whole vehicle leasing thing will/if it comes into play.

Many thanks.

[225]

Its still a monthly outgoing whuch your bank statement will show

[teaston]

Correct it is not a debt that shows up on your credit report like a PCP does.

You can declare your lease repayment as a monthly outgoing if you want, although I have never been asked to prove my monthly outgoing when taking out a mortgage!

[Wills2]

Hmmmm, well when I leased an A6 allroad it most definitely showed as a credit account on my Experian credit file with a balance outstanding just like any other debt, no idea why you'd think it wouldn't you sign a credit agreement and borrow money.

The benefit as far as leasing is concerned vs. PCP for credit file purposes is there is no balloon/GFV.

Of course your potential lender will decide what they will and won't take into consideration when deciding what they want to lend, within the rules laid down.

[Broncho]

I think it pretty much goes on affordability these days anyway so would be taken in to account as a monthly outgoing.

[....,,,,..,,..]

If you are remortgaging, then I would not be overly concerned if PCP or lease.

It seems to be more of a potential issue for new applications (first time buyer, new properties) or at least that has been my experience over last 5 years.

As mentioned above it appears as an outgoing on statement or as a big item on your credit file.

[isleaiw1]

Originally Posted by teaston

Correct it is not a debt that shows up on your credit report like a PCP does.

You can declare your lease repayment as a monthly outgoing if you want, although I have never been asked to prove my monthly outgoing when taking out a mortgage!

But if you want to get out of a lease you have to pay a proportion of outstanding adding amounts. At least with a pcp you can sell the asset.....

[savgeax]

Thanks for the responses. I guess there is only one way and that is checking the experian credit report to see if it shows up as a debt.

I just thought that given its a lease, if you fail to pay, they take the car away. End of. Maybe with a fine/fee to pay.

[CazuaLLUK]

Originally Posted by teaston

You can declare your lease repayment as a monthly outgoing if you want, although I have never been asked to prove my monthly outgoing when taking out a mortgage!

You got lucky then, I was asked to print 12 months bank statements and give it to them. When I next met them they highlighted stuff and had to explain what/who/where/how.

I had a share plan via work, £35 a month from my wages. Was told to cancel this to get my mortgage, if I didn't it was a no go.

[AlfaM]

When I lease cars the value of the outstanding value lease show up on my credit report i.e. £300/month over 24 month will show up as a £7200 debt.

When I PCP a car the outstanding monthly payments + the balloon payment show up i.e. the same monthly payment above + a £15k balloon will appear as a £22200 debt.

[AndyEssex330d]

When I took out my mortgage last year, the pcp's show up as the total amount owed, whereas the lease is only seen as a monthly cost for a given period.

The main thing they look at (or they did for me) was monthly outgoing vs Incoming.

Depends what lender, some are more modern in their thinking.

[teaston]

Originally Posted by CazuaLLUK

You got lucky then, I was asked to print 12 months bank statements and give it to them. When I next met them they highlighted stuff and had to explain what/who/where/how.

I had a share plan via work, £35 a month from my wages. Was told to cancel this to get my mortgage, if I didn't it was a no go.

Bloody hell, I certainly didn't have to do that for my HSBC mortgage! Do you have to give statements for every bank account you have? I have 4 or 5 bank accounts, that would be a nightmare!!

[CazuaLLUK]

Originally Posted by teaston

Bloody hell, I certainly didn't have to do that for my HSBC mortgage! Do you have to give statements for every bank account you have? I have 4 or 5 bank accounts, that would be a nightmare!!

I only had 1 at the time, as I didn't have my self employed work online which I now use another bank account for.

But yeah it was a nightmare!

[ciscopete822]

Originally Posted by Wills2

Hmmmm, well when I leased an A6 allroad it most definitely showed as a credit account on my Experian credit file with a balance outstanding just like any other debt, no idea why you'd think it wouldn't you sign a credit agreement and borrow money.

The benefit as far as leasing is concerned vs. PCP for credit file purposes is there is no balloon/GFV.

Of course your potential lender will decide what they will and won't take into consideration when deciding what they want to lend, within the rules laid down.

^^ This

It will always show as debt on your credit profile. Nationwide were not concerned about that provided income is sufficient.

[SteveChester]

Thread resurrection!

[sahajesh]

Originally Posted by SteveChester

Thread resurrection!

And a thread with Cazual that didn't mention tricked out cars or key cases