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1st Mortgage but have credit card debt
Fodderlink
Posts: 6 Forumite
Hello Folks,
Looking at getting my first home/mortgage (by myself) at some point relatively soon (this year) and was looking for some advice.
I currently have £6800 (was £13000 last year) in debt on a 0% credit card to be payed by 2020 & have around £2000 in a LISA for my deposit, i also have some other funds that I plan to use for the deposit currently sitting at £1500.
Have around £500 a month that can be used to pay debt or save for a deposit.
Am I better off paying off my debt and then saving for my deposit or continue to pay small amounts (at least minimum) on the credit card and save fast for a deposit?
I am lucky to have a good wage and have been renting for the past 5 years but am sick of renting now.
Looking at getting my first home/mortgage (by myself) at some point relatively soon (this year) and was looking for some advice.
I currently have £6800 (was £13000 last year) in debt on a 0% credit card to be payed by 2020 & have around £2000 in a LISA for my deposit, i also have some other funds that I plan to use for the deposit currently sitting at £1500.
Have around £500 a month that can be used to pay debt or save for a deposit.
Am I better off paying off my debt and then saving for my deposit or continue to pay small amounts (at least minimum) on the credit card and save fast for a deposit?
I am lucky to have a good wage and have been renting for the past 5 years but am sick of renting now.
0
Comments
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Most lenders will "tax" your mortgage affordability £340 a month for that card debt, 5% of the balance.
Why not use lender online affordability calculators with and without to see how it will affect you?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I have used a few different calculators out there and all are offering me more that what I need even with the debt added.0
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Great.
Nothing to worry about then!I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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