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Pay off debt or bigger mortgage deposit?
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TheSweens
Posts: 2 Newbie

Hi I’m a new member looking for some advice.
I’ve recently inherited and have sensibly decided to pay off some debts. But I have some credit card debt on 0% for the next 12 months.
Should I pay off these cards now or keep the money for a bigger mortgage deposit.
If I paid these down so my credit utilisation is 20% should I just keep them for now?
If I paid these down so my credit utilisation is 20% should I just keep them for now?
0
Comments
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Depends two of the key interactions
Borrowing capacity
LTV(which determines the interest rate )0 -
getmore4less said:Depends two of the key interactions
Borrowing capacity
LTV(which determines the interest rate )
We are looking at a new build and getting a Help to Buy mortgage. I’ve already spoken to the mortgage advisor the builders put us in touch with.With a £40k deposit we could get a £333k mortgage (just based on rough figures initially).
But if I use £5k to pay off the credit cards I assume that’ll reduce the size of the mortgage I could get?
Or dose having that debt risk me being rejected for a mortgage completely?0
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