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What's better for getting a mortgage - increasing deposit or reducing outgoings?
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daveshoelace
Posts: 114 Forumite
Hi all,
Buying a house soon. About to get £500 come my way, which is the exact amount I need to pay off a 0% apr credit agreement I have, which is a £50 a month outgoing.
Is it better, for mortgage purposes, to increase my deposit, or pay off this debt so my outgoings are less? FYI I currently have a 15% deposit, and would estimate I wont be able to get it to 20% by the time we put an offer in on a place - so basically it is unlikely to influence the rates based on the deposit.
I'm still guessing increasing the deposit is the way to go.
Buying a house soon. About to get £500 come my way, which is the exact amount I need to pay off a 0% apr credit agreement I have, which is a £50 a month outgoing.
Is it better, for mortgage purposes, to increase my deposit, or pay off this debt so my outgoings are less? FYI I currently have a 15% deposit, and would estimate I wont be able to get it to 20% by the time we put an offer in on a place - so basically it is unlikely to influence the rates based on the deposit.
I'm still guessing increasing the deposit is the way to go.
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General rule is clear debts first. This has the benefit of improving your lenders credit score.0
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