Having a car loan can affect your ability of getting a mortgage.
The banks will be concerned with your ability to pay both your car loan and your mortgage, so it’s more about what your repayments are rather than the amount owing.
As mortgage advisers we can assess this with you before applying for your mortgage, and if necessary we can look at restructuring your car loan to reduce the repayment commitment.
It’s important top understand how the banks assess your ability to service loans, which can differ a lot to what you may think you can afford. The banks have a very conservative approach so often you may be surprised at how they calculate your affordability, but they have the money and the rules which we must work with.
