zkat wrote:


I doubt if your new loan will make much difference to the lender's
thinking, but then all has changed over the last few months, so who
knows?

Rob Graham

Cool. Good point about track record because I'm actually not a big
borrower, more the the type that pays everything off on time. My only
borrowings are two mortgages (different properties), one of which is
to be replaced with a bigger mortgage. I need/want to maximise the
amount that I will be able to borrow this time round. Seems like a
toss-up between spending 4k from my own pocket and risking it being
taken off the mortgage that I eventually apply for.
My worry is that a lender might reduce the mortgage borrowing after
applying a factor 1 to an existing outstanding loan amount, e.g. if I
have a 4k loan, they reduce the borrowing amount by more than 4k.

And, yes, buying a car is a necessity at this time.

If you've got mortgages already, then that is enough of a track record for
them. Two months of car loan repayments isn't going to make any difference
at all in that department.

It depends on the lender, but some calculate on an affordability basis, and
if you have a car loan, they will deduct the monthly repayments on that
from what they assess you as being able to afford on your monthly mortgage
repayments. A £4k car loan will have higher monthly repayments than a £4k
mortgage loan because you are paying off over a shorter period, so that
could mean more than £4k taken off your loan. Lenders who use an income
multiples basis will probably ignore the car loan.