Debt and Mortgage application?

declutterqueen

Hi Guys.. Need advice!
Myself and my husband have about 20k of debt.
We are renting at the moment and pay £500 a month.
Husband is due to inherit 50K... What would be the best thing to do?
We would like to get on the housing ladder.. would it be better to pay off debt first then use 30k for a deposit?
Thanks

MrWillyWonka

Yes because;
1. Mortgage interest is probably going to be a lot lower than current debt.
2. The sooner you mortgage, the quicker you start investing and not wasting on rent.
3. You are more likely to be declined for a mortgage with that level of debt, assuming you are on average wage.

Of course further info you give could change all the above.

Million_Percent

Given that your current rent is £500 a month, I assume you are not looking to buy in london or buy a huge property. In that case, I'd imagine a 30K deposit should be more than enough to get you on the ladder with a good mortgage deal.

As WW says, 20k unsecured debt would be a big red flag to a lender regardless of the size of your deposit.