Best credit for mortgage applications

Mo1908

The good news: I have 50k 
The bad news: I have two debts,
9k on a 0% credit card. (Minimum payment around £100/ month)
6k on a loan with 2 years left (£160 a month)

if I were to apply for a mortgage, would I be better to:

1) have a bigger deposit and these debts

2) have a smaller deposit and pay them off

3) some combination of 1 & 2

Thanks

sy8111

It is a complex calculation and it really depends on your needs. Personally, I'd pay off the 2 year loan if I can, because it must have a higher rate than mortgage. Instead of leaving it running and hence reduce mortgage loan, I will get rid of it so I can have more of the low rate mortgage. 

Same analysis to the credit card loan. but note you are enjoying 0 rate at the moment, so it's your choice pay off or not.

Mo1908

The credit card 0% expires March 2021.
if I look at my credit report the only thing which flags up negative is ‘borrowing more than 50% of credit limit’. The limit on that card is £14k against borrowing of £9k. I have two other credit cards: one has a credit limit of £18k but I haven’t used for a couple of years, £0 balance.
Another I use for purchases has a £12k limit and again has a balance of £0.

maybe reducing the balance on the existing card would help??