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Unsecured loan effect on mortgage application
akm360
Posts: 1 Newbie
I'm currently saving up for a deposit so that I can apply for a mortgage but I hadn't taken into account an unsecured loan that still has two years left. The amount to repay is around £6000.
I'm not sure if it would be better to pay off the unsecured loan early and then saving for a deposit so that I have a better chance of getting a mortgage and won't have to wait 2 years until the loan has been payed off?
I'm not sure if it would be better to pay off the unsecured loan early and then saving for a deposit so that I have a better chance of getting a mortgage and won't have to wait 2 years until the loan has been payed off?
0
Comments
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If possible pay off the loan. Given you are paying a higher rate of interest on the debt than you are earning on your savings. Will save you money in the longer term.0
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