Amount of debt vs bigger deposit

aldebtfreewannabe

Hi all!
If all goes to plan, my partner and I are hoping to be in a position by December 2022 to buy the house we are currently renting (already discussed with landlord).
I have done a spreadsheet and based on our debt now we should have around £6,000 debt left and around £20,000 for a deposit.

My question is...would it be worth clearing the debt with the £20,000 first, leaving us with £14,000 for a deposit? Would it make much difference what is available to us by having that amount of debt vs no debt at all?

Any help would be appreciated!

Thrugelmir

What's the benefit to you of not repaying the debt? 

aldebtfreewannabe

Thrugelmir said:

What's the benefit to you of not repaying the debt? 

That's what I'm asking really! We've budgeted to be able to pay off as much as possible per month while saving but I'm not sure what difference it will make still having the debt when applying for a mortgage. We would like to buy as soon as possible and by doing it this way it means we will have enough money for a deposit by the time stated in my original post.
Is it worth paying off the debt first and then focusing on saving meaning it means we're renting for longer?
For context, our current rent is £650 and we will be looking at around £400 a month for a mortgage (based on current figures). So having £250 a month sooner rather than later is the goal.

Unicorn_cottage

What is the breakdown of the debt?

Thrugelmir

What form does the debt take? As will impact affordability. 

My question was posed from the aspect of clearing debt is often the most efficient method of saving over the longer term. There's little point in viewing savings and debt in different pots. All that counts is the net figure. 

MovingForwards

Also depends on your income and purchase price.

£6k debt on £60k salary is neither here nor there.

£6k debt on £20k salary isnt so good.