Applying for a new can finance agreement will not affect any existing mortgage in place. However, if you are looking to change your mortgage and car finance around the same time and different providers run multiple 'hard' credit searches on your credit file, this may affect whether you are accepted for a new mortgage. Any car finance may also be taken into account when calculating the affordability of a mortgage. A 'hard' search shows creditors that you applied to get credit somewhere else, whether that’s a car loan, mortgage, student loan or credit card. A hard credit enquiry can also reduce your credit score by five and ten points. So, be mindful of the credit you apply for, how many times you apply and how often, because each enquiry is added to your report. And multiple hard enquiries on your credit report can reduce it five to ten points per enquiry and mean the difference between fair credit and poor credit.