# Should i settle my Finance now?



## pete330 (Apr 18, 2006)

Right i am looking at shared ownership houses at present
I have BMW Finance at £292 Per Month at present
I have a mortgage in principle for the money for the shared ownership,based on my credit score at present.

Now it could be another 3 months before i even know if i am getting this house as its new builds,so will need to arrange mortgage in around 3 months

My BMW Finance ends in June at it will be £11667 to buy the car,but i just got a settlement figure now at £12749 (car valued at around 18-19k on forecourt)

Now i could get a loan over 6 years for that money at around £216 reducing my monthly outgoings 

I defo want to keep my car in June no matter what,but would it affect my credit score if i settle the finance early?

Last thing i want to do is take out loan now
Pay off the finance
Then in March try and get mortgage for definite and they wont give now due to this

I could always if worst came to worst sell car private and pay off loan,hopefully giving me a few grand extra for deposit on mortgage if needed

What would you advice guys?


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## bigmc (Mar 22, 2010)

Sell the car imho, you've already paid £292 x your term for the car and you want to get another £15.5K 6 year loan!


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## griffin1907 (Mar 4, 2006)

Are you gona keep the car for another 6 years?

Personally, sell car, set up home, go car shopping


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## pete330 (Apr 18, 2006)

griffin1907 said:


> Are you gona keep the car for another 6 years?
> 
> Personally, sell car, set up home, go car shopping


I don`t want another car as there is nothing i like or could afford,so yes more than likely,but just cause i take the loan out for 6 years does not mean i have to keep car that long,i only said 6 years as it takes payments down.

for the settlement fee there is nothing i could buy that comes near to what i have,so i may as well buy it


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## PaulN (Jan 17, 2008)

Why not wait till you sort your mortgage no need to settle early. 

Also maybe look to get an extra £10 on the mortgage hell of alt cheaper than a loan


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## bigslippy (Sep 19, 2010)

Hi , depends on lender , restricted lending for shared ownership , have they based your mortgage on the fact that the finance on the car finishes within 12 months?

It won't affect your credit score if you pay it off early and if you add £10k to your mortgage , although lower interest rates you are looking to increase secured lending plus taking it over a much longer period of time the total cost of borrowing is higher than a shorter term unsecure loan


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## A210 AMG (Nov 8, 2008)

Hello

Have you worked out your out goings once you have a house to see if you can actually afford everything including 'the' car?

Best thing I did years ago was buy a house, I had at the time a Mk3 Golf Gti Anniversary new (on finance) when I decided to buy a house I sold the Golf and went over to Dublin and bought a MX5. Paid about 6K for it and put a private on it. Anyone who saw me thought I'd gone 'up' in the car stakes as it was a convertible...no one knew what it cost.


I would plan out all your expenditure with the new house. How long have you been paying the loan already? £12700 still sounds a lot to pay off and I certainly would NOT want a 6 year loan on a car. Also 'valued at 18k - 19K on forecourt' by No means would mean you would get that.... You make even only just break even? what car is it?


Personally I would work out what your new outgoings will be, sell the car and pay off the finance. Then look at buying a cheaper car.

Cars de value so so so quick, even on my first house I doubled my money in 2years (it needed a lot of work and myself and dad did this) then bought a bigger one and did the same. 

I would much rather have a nice house and cars that are paid for on the drive than owing money on cars also.


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## A210 AMG (Nov 8, 2008)

quote "Also maybe look to get an extra £10 on the mortgage hell of alt cheaper than a loan"

I assume you mean 10K ???

cheaper than a loan...... do you think???

Work out the interest over the period you would actually be paying that £10K over (20 years, 25 years or even more and it would be a lot lot more. I would not recomend getting a loan for a car on your mortgage NO way....


Best bet, sell the car. Buy a cheaper one and pay a little more off your morgage each month if you can. Even say £50 a month could save 4 or 5 years payments and thousands off the total.


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## pete330 (Apr 18, 2006)

only 5 company's do the shared ownership mortgage and only 1 of them has offered up the money i need based on me having 292 per month leaving my account


There is no point not buying it at that price as its got to be worth over 13k lol so better in my pocket if i did sell it

going to maybe see the dealer and see what they offer to settle finance and use the extra money for deposit and lower the mortgage amount



Its a 2008 08 BMW 325d m sport auto,with near every extra fitted
20000 miles on clock with warranty etc etc
Just had it valued (not how much they would give)at just over 18K by an indy but that does not mean it will sell


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