Paying off credit card for mortgage application

class2ldn

Hi all, me and my partner are looking to buy our first home sometime within the next six months.
My issue is that I have a credit card with santander of 2500.
I increased my overdraft to pay some of it off as it was at nearly 4k and the interest each month was around £50. My bank is also santander and when I enquired about increasing the overdraft to pay the card off they refused and would only increase it to 2950.
This now gives me an issue as I now can't afford to pay it off in 1.
I save 1200 a month into our joint account and my partner 475 but the house bills and rent come out of that . The rent is 775. We currently have around 12.5k saved for a deposit. Would it be better to use the extra 425 each month to pay off the credit card rather then put it in savings. Obviously it would be used towards the mortgage deposit but won't be much use if we get turned down anyway.
What's the best way to reduce the debt?
I've not been in my overdraft for around 5 years and am only using it to pay off the credit card as the charges are alot less and this would have been fine if I could have paid it off in one but now I can't I'm being charged for both the card and overdraft.
I don't want to scupper the chance of our mortgage so any advice would be great.
Many thanks

sam2015_2

Avoid going into overdraft and pay off the credit card with the extra money you have.
You'd be able to borrow more for your mortgage if you have good credit history and no other debts.

Thrugelmir

Use your savings to clear your debts. Then consider your options again. There's little point in borrowing to save.

class2ldn

Yeah that's what we will do, I just wanted to try and save up more for the deposit but clearing the debt is obviously the main aim. Problem is that where we are looking ( crawley) has seen a massive jump in prices even from the start of this year, if we wait a year it may have gone up more then we've been able to save and put us in a position where the deposit isn't enough, that's why we wanted to do it now rather then later. Should have just kept paying the credit card off and stayed out the overdraft. Can quite happily afford it all its just a negative for a mortgage.
Getting a 1.5k payrise this year and another one of 3k in april so hopefully will make things more comfortable. Would they look at that for future affordability checks?