100% mortgages + car loan

C

colem

Guest
I am looking into getting a 100% mortgage for about €340,000. I have used the calculators on the big banks websites and on our joint wages we have be approved in principal on all. Just a quick question can you still get a 100% mortgage if you have a car loan. My girlfriend has a car loan of €10,000 in her name. Would this have to be cleared or would we be OK with this.
 
The loan will most likely be taken into account and will make a big difference to how much you're offered.

For example paying off loans of €5,000 increased by €40,000 how much we were allowed borrow.

Hope that helps
 
Effectively having an exisiting loan impacts the amount you will get as a mortgage on the basis of repayment afforability. For example, with the 10k loan, your girlfriend has financial commitments of (say) 250 pm. The banks tend to operate on the basis of a max of 40% of disp income allowed to serrvice loans (mortgage and any other financial commitments). Thus if this loan were cleared, you would qualify for a mortgage with payments 250 pm greater than the one you would get without clearing the loan. So you can work out backwards what difference that could make to the capital sum available to you.
As shoppergal said, a few grand can make a massive difference to your mortgage approval limit...
 
Myself and OH had loans of 7K and 2K each and when we cleared them our borrowing threshold increased by about 45K so it would definitely be advisable to clear.
 
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