[badders74]

I am so annoyed! I entered into a PCP like others on here and following on from apl335 thread. A PCP can have a real negative affect on your biggest liability, your mortgage!!!!
My mortgage rate ends in January next year but I can now tie down a new rate. I spoke to the bank about having our house valuated again as we bought it for £255K in 2005 and last year spent 60k on extending it. This means our house should be worth a lot more than the current valuation the bank has on their record. We have a mortgage of £190k remaining so by valuating our home we would have around 35% equity in it at a guess.
Unfortunately, the bank says its not based on your equity but also your personal finances, so by having a PCP effectively you still owe your monthlies plus a lump sum of £16,800 at the end!!!
My monthlies are low at just over £200 a month as i put down 15k deposit but now i am annoyed as i cannot get a better rate of interest due to the car!!!! If you look at mortgage products its about 1% less when your equity goes past 30%.

[badders74]

Without a PCP my mortgage would be approximately £100 less a month. If i got the car after renewing my mortgage rate i wouldnt have this issue! It is stupid!!

[GBR1]

I think the biggest problem is that different mortgage companies have different policies for these things. I just renewed my mortgage after the first 2 years of a deal with the same lender and ZERO questions were asked, mine dropped by £250 a month! this was with Santander

One of my rental flats is with Halifax and they are *&^kers, will change as soon as I get the opportunity.

[matt_320d]

I'm in the position of being able to buy my new car upfront..it seemed kinda crazy..surely better to spread the payment and have the extra money for a house deposit..but, apparently not...this is why I didn't go the PCP route.

[Tengocity]

I'd be looking elsewhere for a mortgage.

And agreed on Halifax, bunch of idiots, and no surprise they were doing so badly.

As our home was originally my place we keep the mortgage in my name and both cars are in the wife's name. Seems to give us better flexibility.

[moonshine]

we moved house in feb - i waited until the mortgage was agreed before i considered a new car and signed my PCP finance agreement as i was afraid it could adversely affect our ability to secure a mortgage.

It makes sense tho as it all ties in with the new “affordability stress tests” and hopefully prevents people from getting in over their heads with debt. (to the OP - not referring to you!)

[Tengocity]

I agree that there should be stringent affordability tests, but when remortgaging it seems daft to tell you that you can't afford it when you're clearly already paying it, and probably at a higher rate!

[Mattt1]

The affordability tests should make it easier you would have thought, as you have no commitment to pay the balloon at the end and the monthlies are the main point.

[F30 Steve]

Bought my car cash=0% interest

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

Originally Posted by Mattt1

The affordability tests should make it easier you would have thought, as you have no commitment to pay the balloon at the end and the monthlies are the main point.

Unfortunately, it's the total amount.

To me it should be a simple - do you pay current mortgage regularly, do you over pay it, do you regularly have x amount (1k etc) in your account at end of month.

What debts, liabilities should not come in to it that much.

Let's face it, if we went back to the 10-15% rate! everyone would be screwed.

The other crazy bit is, the less able you are to pay, the higher the interest - therefore harder to pay etc etc.

[Apl440i or 335d?]

It's a bit crap really, and makes me really resent my lovely 335d. At the moment, I just see it as a big anchor round my neck!

Hope you get it all straightened out mate.

[Steven1077]

I'm even getting turned down for credit cards now, my credit rating was excellent when I bought my car, now I can't even get a low interest credit card with my own bank, how stupid is that?

[BGB]

All sorts of credit things go against you on a Mortgage. even your occupation can herald higher rates. Always worth shoppign around and trying to negotiate better deals

I have had my Mortgage with RBS for years. every time I come up for a renewal I beat them down with comparative quotes from other lenders.
The main thing to look is the total cost over the period as some places charge you an Admin or setup fee. RBS has always dropped their fees so over the period i tend to pay out roughly the same as i would have if I had moved.

[Nick the Greek]

This is all part of the MiFiD regulations thanks to the bunch of financial incompetents that used to run the country, Tony Brown and Gordon Blair.........

[Apl440i or 335d?]

Originally Posted by Nick the Greek

This is all part of the MiFiD regulations thanks to the bunch of financial incompetents that used to run the country, Tony Brown and Gordon Blair.........

cunch of bunts!

[Nick the Greek]

. cunch of bunts!

Excellent point.

Well put.

[NISFAN]

Originally Posted by Nick the Greek

This is all part of the MiFiD regulations thanks to the bunch of financial incompetents that used to run the country, Tony Brown and Gordon Blair.........

And dangerously close (if you believe the polls) of getting back into power.......don't the British public know anything about politics?

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

Originally Posted by NISFAN

And dangerously close (if you believe the polls) of getting back into power.......don't the British public know anything about politics?

It's scary just how little they know or just how apathetic the general public are with politics, voting etc.

For the police commissioner roles, we had between 9 and 10% turn out.

This nation once built the Titanic, now we may actually be sailing on it.

[Nick the Greek]

You have to remember my dear friends NISFAN and Brigand, that large swathes of the British public are thick.
They vote Labour 'cos me Dad and Grandad voted for 'em'.......

[Cootie]

Mortgage Market Review (MMR) rather than MiFID, which is the Markets in Financial Instruments Directive.

Agree though that the sentiment of the MMR, which is designed to evidence fair treatment of customers and ensuring the affordability of the mortgage in the medium terms has been poorly implemented by many lenders, primarily as a result of over zealous Compliance departments.

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

Originally Posted by Nick the Greek

You have to remember my dear friends NISFAN and Brigand, that large swathes of the British public are thick.
They vote Labour 'cos me Dad and Grandad voted for 'em'.......

According to an article in New Scientist, some of the British public are directly responsible for global warming.

Apparently they have been stealing oxygen!!!

[Cootie]

Originally Posted by Nick the Greek

You have to remember my dear friends NISFAN and Brigand, that large swathes of the British public are thick.
They vote Labour 'cos me Dad and Grandad voted for 'em'.......

If you think that's bad we have to put up with the SNP brigade and their self obsessed, self serving, ill informed crusade...