Pay off debt or save for mortage deposit

a_silver_lining

How long have your finances been in order?

Jvj24601

Why do you ask? I don't understand how it's relevant to my initial questions?

undlou

Jvj24601, I believe a_silver_lining is only trying to help. This is a support community, therefore, another member may be able to give you some great advice that may prevent you from making a big financial mistake- hence the questions. Try to be open-minded, not everyone is here to attack you.

Jvj24601

I simply asked why they were interested. It doesn't seem relevant to my question. I think it's a fair question to ask.

If it makes the question simpler, let's take a hypothetical scenario. Forget all the other bits and bobs. Just this simple scenario.

Imagine for the next 12 months I have £1500 a month spare after paying my bills (18k). I can either use it for a 15-20% deposit or I can clear my debt.

Forget the moral side of it, whether or not I should be paying my debts. From a practical perspective, which would give me the best chance of getting a mortgage?

undlou

If it was me, I would pay off the debt then save for a mortgage deposit the year after.

I obviously don't know the ins and outs of your debt history, but I'm thinking that way I won't have to worry about debt hanging over me while I have a mortgage to pay.

Jvj24601

Thanks for your reply. I'm definitely the other way with how I would feel about the debt. I want a mortgage - that is my main aim. If I can can get a mortgage and then sort out the debt afterwards (if I have to) then I'm fine with that.

But, if I have to sort out the debt first in order to get a mortgage then that's what I'll do. I'm just evaluating my options before I make a decision but my absolute overriding goal is to get a mortgage ASAP.

Jvj24601

What I don't want to happen is to spend thousands paying off my debts only to find it I still can't get a mortgage whereas if I had saved up a massive deposit I could have got a mortgage, regardless.

louloufox

Hi, why don't you talk to a mortgage adviser soon. This will give you the best idea of what the current situation with mortgages is. Anyway best of luck with your future.

undlou

Jvj24601 wrote: »

I want a mortgage - that is my main aim.

I understand that. It's hard enough to get on the property ladder as it is, that's without our debt baggage.

I second that advice on speaking with a mortgage advisor, they have helped me in the past.

Good luck!

Jvj24601

Thanks guys. Mortgage advisor is definitely the next step. I just thought I would get some views on here first. Thanks everyone for your advice. I do appreciate it. Hopefully I will soon be have a plan to be owning instead of renting and then debt free.