Clear Debt Or Bigger Deposit

eddie1507

Hi all, me and my partner will in the next 4 months be looking to get a house. I currently have 10k Savings and 5k in debt.

My question is would i be better to consolidate all my debt in a loan and then pay this over 3 years, and save up for a 10% deposit or should i clear all debt and have a 5% deposit?

Any help will be great

Thanks

Nice_Weather_For_Ducks

Having 10K savings and 5K debt sounds like you are a bankers dream customer!!

CLAPTON

eddie1507 wrote: »

Hi all, me and my partner will in the next 4 months be looking to get a house. I currently have 10k Savings and 5k in debt.

My question is would i be better to consolidate all my debt in a loan and then pay this over 3 years, and save up for a 10% deposit or should i clear all debt and have a 5% deposit?

Any help will be great

Thanks

Mortgage lenders will take any debts into account when assessing affordability so debts will reduce what you can borrow.

why not try your numbers in the mortgage lenders online calculator.. most have them to give an idea what you can borrow.

Thrugelmir

Clear the debt. This will enable you to save more.

Review your outgoings and see what you can cut out / cut back on in order to save more.