Mortgage & debt advice!

CJR1608

Hi folks, brand new to the site and I've been reading other guys post.....the help and advice is brilliant. So I thought I'd jump in.

Ok bit of background, we are looking at a home for £240k on the help to buy scheme so looking at a mortgage of around £175k we need a £12k deposit.

At the moment our debts total £13k on a combination of credit/store cards and one loan. We pay £480 per month!

The house is due to be ready Sept '15(yes I realise a lot of things can change in that time......price, helptobuy offer, etc)



So what I was wanting advice on.

Do we continue to save £400/£500 towards our deposit and pay debts off as we are currently?

OR

Get a consol loan now to achieve a lower per month payment(which I believe will help with affordability come mortgage app) and clear all debts, also helping us save the extra for deposit, possibly £700 per month. Hopefully by application time, we will only have one loan rather then several payments and around a years worth of payments towards that loan?

Thanks in advance folks

Thrugelmir

Lenders access all sorts of data regarding the conduct of your accounts from the CRA's. So consolidating debt to lower monthly outgoings will be very obvious the lender. In the first instance I would suggest a commitment to making serious inroads into the debt you currently owe. As you say a lot can change in a year. Even more in 10 years. Which is where the concern for a lender will lie.