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First time buyer
Pleasehelpme
Posts: 14 Forumite
Hi,I wonder if anyone could help me.I am looking for a first time buyer mortgage and have 25% deposit and am in a permanent position that pays £46,000pa but also owe £7,500 as part of a loan. I have £8,500 in my bank account and was just wondering if it was better to use this money to pay off the loan or use the money in my account to increase my deposit to 30%. I am looking at it from a perspective of getting the best mortgage rate and not from a trade off for the the loan v mortgage rate as they are similiar. I have yet to apply for a mortgage and just want to get it right first time. Any help much appreciated.Many thanks.
0
Comments
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going from a 25% deposit to 30% will make no change in the deal you can get. it is also adviseable to have money on deposit in case of an emergency.
But, why pay double figure digits on a debt, whn you are getting pittance interest on savings? pay the loan off.0 -
Agreed. Pay off the loan. Lenders will prefer that (and so will your wallet).Starting Debt: ~£20,000 01/01/2009. DFD: 20/11/2009 :j
Do something amazing. GIVE BLOOD.0
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