Pay off car finance or Save for mortgage?

MA87

Hi all,

I am a long time lurker of the forum and it has been a great resource for sorting my own poor finances out. In 2011 I moved out from my parents home to make it in the big wide world and with the new found freedom proceed to make a royal mess for myself financially. At one point was in debt of just over 22k with lots of defaults in 2012/13. With lots of hard life lessons, paid for DMP and leaving the DMP and doing it myself I can finally see light at the end of the tunnel, and what a fantastic feeling it is.

My life has progressed since then and am now married with two wonderful step children and all debt will have been paid off by Christmas, minus the car finance which I am not concerned over as never missed a payment and is very much affordable.

We are very fortunate that my parents are going to gift us 25k for the purposes of a house deposit. We would also like to add to this and was wondering if anyone could share some advice. Would we better using our savings to pay off the car finance, leaving us with 3k to put towards a house deposit or continue paying the car off as normal and having 8k to put towards a house deposit? We would be looking to buy around December 2018 or just after to give our credit reports time to improve further and to save.

I suppose what I am asking is would it be better to have a lower house deposit with no outstanding credit or having a higher house deposit but with the car finance still being paid?

Thanks in advance

P.s. my apologies if this is in the wrong thread.

enjoyyourshoes

If there are no early repayment charges and you can honestly commit to utilising the cash saved to increase your deposit for a house, then pay off loan.
look into LISA and help to buy ISA

Debtslayer

What are your plans for the remainder of the 25k you are being gifted?

[Deleted User]

Two questions.

1. How much is left on the car loan, and over how many payments?

2. What's the APR on the car loan?