James
If I terminate a car hire purchase loan and hand the car back, which I am legally entitled to do, I understand a note would be attached to my credit report stating this. Would this affect me obtaining a mortgage?
Paul, London
Paul
You have no need to worry. If you exercise your rights to voluntarily terminate the agreement, as long as the car is in reasonable condition, you have repaid at least half of the total amount due under the hire-purchase agreement and you have made all your repayments on time, your credit report will not be damaged. The account on your credit report will simply be marked as settled and a flag added to explain that the account was settled ahead of schedule due to voluntary termination. By the way, before you start applying for mortgages, be sure to give your credit report an overhaul to make sure it's accurate, up to date and paints the best possible picture of your current financial situation. You wouldn't want any last-minute hiccups just as you're about to exchange keys!
James