Paying off loan before mortgage application

Seslea

Hello,

My partner and I are hoping to start the process of buying our first home this year. Our credit files are healthy, however, I have an outstanding loan of £7.3k that I used to buy a car in 2019. I pay off £350 per month and have never been late on payments. We have no other debts. 
Just wondering if its worth paying off the loan early (there are no early payment fees), or to continue paying it off monthly and hope it doesn't impact the amount we'll be eligible to borrow too much? To pay it off I'd have to use my savings, which are for a deposit, so this will obviously set us back a few months to make that money back.
My DTI ratio is 9%. I've looked at a few different websites that suggest there are pros and cons to both, but just wanted to get some advice.

Thanks in advance  

K_S

@seslea Generally speaking, it depends on the numbers involved - how much you need to borrow, what's the minimum deposit you need and your income.

Try playing around with a couple of lender affordability calculators to get a very general idea of what the impact may be.

https://www.nationwide-intermediary.co.uk/calculators/affordability-calculator

https://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx

JJG1984

Having the minimum deposit and more disposable income is far greater than a larger deposit for affordability when I did all the calculations.

[Deleted User]

JJG1984 said:

Having the minimum deposit and more disposable income is far greater than a larger deposit for affordability when I did all the calculations.

Not always 
It depends on the borrowing levels and income. 

For example ( by playing around with affordability calculators ) I can have loan repayments up to £600 before it then starts to impact affordability for me.