Gransnet forums

Legal, pensions and money

Hard search from remortgage - should I wait for car finance?

(6 Posts)
Kai63 Mon 03-Apr-23 16:25:29

I have a very good credit rating and want to buy a used car on finance. I’ve just started a remortgage application and there’s a new hard search on my file.

Should I wait before buying the car on finance and if so, how long?

Katie59 Mon 03-Apr-23 16:59:59

You wouldn’t normally remortgage property to buy a car and the bank or building society would not normally see it appropriate.

Interest rates are high a S/H car is likely to be 10% + interest and any popular small car is not going to be cheap. It depends how much you can afford, there are cheap runabouts for £2000 or less, or newer cars on finance for around £120 a month upwards but you will probably still need £2000 deposit.

crazyH Mon 03-Apr-23 17:16:11

Are you talking of equity release ?

Kai63 Mon 03-Apr-23 17:16:18

Sorry just to be clear they are separate things. I have started to remortgage the property and have a hard search on my file.

But I also want to buy a car on finance and am worried whether them seeing a recent hard search will reduce my options or even stop me getting credit.

I’ll be putting down a sizeable deposit (more than £2k) so will only pay interest on some. Planning to buy via PCP.

Blossoming Mon 03-Apr-23 17:19:43

I think they stay on your file for 6 to 12 months. It shouldn’t stop you from getting credit if it’s a single hard search.

Kai63 Tue 04-Apr-23 00:26:01

Thank you!