Mortgages, Babies and Cars

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GRE57Y

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Hi All,
My life is starting to change drastically now as you might have guessed from the thread title.

The problem is I need a mortgage for a house, in time for the arrival of our first child and my PCP on the S3 is holding me back.

My car is currently in about £3k Negative equity (car is 13 months old!) and I need the pcp gone to be accepted for my mortgage by June.

I do around 23k miles per year, using the car for work and social.

My dad is willing to put a PCP in his name, although payments will be paid by me. It's purely a case of the lenders not liking it against my name (even though its still affordable).

I need advice on the best way of getting into another car (audi) with minimal extra cost.

All help is welcome.

James
 
Also, a dealer has offered to put me in the following in return for taking the S3:

A3 Sport 2.0TDI (150PS)
23k Miles PA
£1700 deposit
£440 per month

By my maths there is no incentive to do this as they only clear £1300 equity (£3000 negative equity minus my £1700 deposit against new= £1300).
 
Not sure if you can, but can your dad take on the S3 pcp and pay him? Also even if your dad does take on pcp and you pay him, the new mortgage scheme will still show you making a payment to your dad and start to ask questions.

Tough one, so silly, like you said you can afford the car and a mortgage but computer says no!!!!
 
Checked that out this morning. Unfortunately, they cant transfer to another name, i.e my dad. Was also planning on making payments to him by cash to avoid any suspicion from the lender ;) lol
 
Can you not get some cash with the mortgage to cover the payments = more money for mortgage company.
 
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Nope I like your thinking but they won't allow it I don't think...
 
Find another lender.....
 
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If your not maxed out on mortgage then go for it, Save the S3.
 
Hand in your S3, get your dad to buy another cheaper more economical car and let you have it. But don't make any payments to him until after you have the mortgage
 
My mate is going through the same dilemma..... he has a 18 month old 320i M Sport. £34k new after £4k discount and he needs to get rid. BMW offered him £17,500 for it on Saturday. Now that's depreciation. He is stuck with it.

From the sounds of it someone is going to make a ALOT of money on your S3 if you trade it in this early.

Getting another car on finance won't solve the issue. I'm actually surprised a lender has said you can have a mortgage but ONLY if you get rid of your car?? Doesnt sound right to me - if its affordable and not a burden on your finances (car and mortgage) then shouldn't be an issue. That's how the lending market works now.
 
GRE57Y said:
Also, a dealer has offered to put me in the following in return for taking the S3:

A3 Sport 2.0TDI (150PS)
23k Miles PA
£1700 deposit
£440 per month

By my maths there is no incentive to do this as they only clear £1300 equity (£3000 negative equity minus my £1700 deposit against new= £1300).
Click to expand...

£440! :ohmy: jesus shyte! sorry but that's way way too much to be paying for a car in my book when a house and a new child is on the list of priorities.

I'd just look at something else much cheaper and made by another company myself
 
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GRE57Y said:
Also, a dealer has offered to put me in the following in return for taking the S3:

A3 Sport 2.0TDI (150PS)
23k Miles PA
£1700 deposit
£440 per month

By my maths there is no incentive to do this as they only clear £1300 equity (£3000 negative equity minus my £1700 deposit against new= £1300).
Click to expand...

Seems pricy that, I've got the same model with some options and was £2500 deposit
£310 a month
 
The £3k "negative equity" will most be probably be based on the trade in book price - if you sell the car privately, and the car is in mint condition, you can probably make up most of that deficit.


Then, if you still want a 300bhp car - the Golf R lease deals are back - £222 per month (incl. VAT) for a 2 year lease ;)
http://www.audi-sport.net/xf/threads/s3-or-golf-r-or-even-an-s1.219948/page-14#post-2360175

Or spend the money on the house and kids :)


(edit: Just read you do 23k miles a year. Forget the 300bhp car.)
 
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GRE57Y said:
Also, a dealer has offered to put me in the following in return for taking the S3:

A3 Sport 2.0TDI (150PS)
23k Miles PA
£1700 deposit
£440 per month

By my maths there is no incentive to do this as they only clear £1300 equity (£3000 negative equity minus my £1700 deposit against new= £1300).
Click to expand...
That does seem very expensive. When I had my A3 2.0TDI (150) S-Line SB with a few options I was paying £365 p/m with a £1k deposit. It was based on 10k miles p.a.

Can your Dad buy the S3 outright for you and you pay him back cash in hand? Or would he be willing to take out a loan so you can settle the balance on the PCP?
 
Some car insurers wont let you insure unless you are the owner/on the log book.
I had this recently - i sold my S3 and have a car from my dad, but they wouldnt insure it unless i added another owner to the log book :( had to send them a copy of the returned logbook in my name.
Dave
 
david7m said:
Some car insurers wont let you insure unless you are the owner/on the log book.
I had this recently - i sold my S3 and have a car from my dad, but they wouldnt insure it unless i added another owner to the log book :( had to send them a copy of the returned logbook in my name.
Dave
Click to expand...
There's no reason why the OP can't remain the legal owner of the vehicle.
 
Is this problem typical if you have a PCP, and then try to sort out a mortgage? Be interesting to know as I'd likely be getting a mortgage in the next few years so would have to also factor this in.
 
It's not the first time i've heard of this, though I don't think its just PCP it's very much any debt you have. with PCP from my recollection of my friends situation, it wasn't just what was left to pay back, but also the GFV that were classed as a debt against you. so if the PCP loan is 20k, and the GFV is 18k then you are seen as having 38K debt.

But that's from memory, a memory from about 2 years ago, so may not be 100% correct.
 
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Hi All, just a quick update.

By having the car PCP in my name, the lenders look at it as a risk as you have an obligation to pay the amounts. As RedTurtle said- they do take into account the full amount. Therefore, monthly payments are affordable but adding the 'cost' of the GMFV to it make it unaffordable in their eyes as they would expect this to be paid at some stage (even though we would part ex etc at the end instead of buying outright).

Having spoke to Audi Finance again today, they've said it is possible to change it over to a Limited Company but not a Person.
 
Dtwm1 said:
Seems pricy that, I've got the same model with some options and was £2500 deposit
£310 a month
Click to expand...

What annual mileage is that based upon out of curiosity?

veeeight said:
The £3k "negative equity" will most be probably be based on the trade in book price - if you sell the car privately, and the car is in mint condition, you can probably make up most of that deficit.


Then, if you still want a 300bhp car - the Golf R lease deals are back - £222 per month (incl. VAT) for a 2 year lease ;)
http://www.audi-sport.net/xf/threads/s3-or-golf-r-or-even-an-s1.219948/page-14#post-2360175

Or spend the money on the house and kids :)


(edit: Just read you do 23k miles a year. Forget the 300bhp car.)
Click to expand...

The 300BHP isn't a problem as my fuel and mileage is covered as its a car I use for Work, hence the high mileage. Agreed, I think private sale is most likely option to minimise costs, before going into a new deal.
 
Thanks RedTurtle and GRE57Y. That's really interesting to hear as I'd never thought of it like that from a banks point of view.
 
Basically, my Aunt is also my Mortgage Advisor and explained how it all works. She's helping me out massively with this.
 
I'm afraid you need to put the wife and impending child first......
 
Wife n kids first as Steve has said

I'm mortgaged up got a 2yr old and found out The missus is pregnant with our 2nd child 2 weeks ago so I need to get my car sorted as well as mine just isn't big enough
 
They're definitely put first- can't do my job without a car though lol
 
Since the mortgage market review the lenders are under much more pressure to ensure that their affordability checks consider not only your affordability at present, but also the affordability of such payments should the rate increase. It's important to consider that the BOE base rate is currently low and is expected to rise soon, therefore the lenders will also take into account the effect such rise will have on your mortgage payments and whether that amount would still be affordable.
 
veeeight said:
The £3k "negative equity" will most be probably be based on the trade in book price - if you sell the car privately, and the car is in mint condition, you can probably make up most of that deficit.


Then, if you still want a 300bhp car - the Golf R lease deals are back - £222 per month (incl. VAT) for a 2 year lease ;)
http://www.audi-sport.net/xf/threads/s3-or-golf-r-or-even-an-s1.219948/page-14#post-2360175

Or spend the money on the house and kids :)


(edit: Just read you do 23k miles a year. Forget the 300bhp car.)
Click to expand...

Can't wait for the bottom to fall out on the Golf R in a few years
 
GRE57Y said:
Hi All, just a quick update.

By having the car PCP in my name, the lenders look at it as a risk as you have an obligation to pay the amounts. As RedTurtle said- they do take into account the full amount. Therefore, monthly payments are affordable but adding the 'cost' of the GMFV to it make it unaffordable in their eyes as they would expect this to be paid at some stage (even though we would part ex etc at the end instead of buying outright).

Having spoke to Audi Finance again today, they've said it is possible to change it over to a Limited Company but not a Person.
Click to expand...
Sorry GRE57Y but have to question that advice you have had regarding the PCP and mortgage lending. There is quite alot of misunderstanding regarding the new rules - PCP has a repayment vehicle (no pun intended) so covers off the repayment question under the FCA rules.

Is your Auntie a broker or does she work for a mortgage lender ?
 
Last edited:
audi upgrades
Chap at work ordered an R on Friday and hes been quoted Middle May I believe for his, but he got a stock ordered modified so 4-5 months would be about right.

Paul
 
I've just sacked off buying a new s5 and gone for a 125d bmw now because I've just bought a new house .........you can't live in your car they say

I say you can't drive your house ;-). **** gets real when you realise you've grown up and are putting houses before toys, boring or what.
 
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Found a solution... Get a new job and earn more money! Happy days!
 
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But have you actually got a new job? Hope so. Just reading through and catching up. I've never been stopped from getting a mortgage and always have had car finance and mostly PCP's.
Has anything changed in terms of amount owed and required etc.
From reading above I think the one I'd have gone for would have been to get your dad to finance the car (settlement figure) through BMW/MINI/Alphera Finance PCP and you make the payments to him once the mortgage is approved. They take on all finance on any make of car.
 
My advice is to have the snip then it's happy days. Buy whatever you want and the bailiffs won't catch you out on the school run...
 
Yep, got a new job! Have moved into the house a couple of weeks ago too and only a few weeks until the baby is due... New car ordered and due before the end of the year!
 
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