Pay off debt or bigger mortgage deposit?

TheSweens

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?

getmore4less

Depends  two of the key interactions 

Borrowing capacity
LTV(which determines the interest rate )

TheSweens

getmore4less said:

Depends  two of the key interactions 

Borrowing capacity
LTV(which determines the interest rate )

Does borrowing capacity mean the same as affordability?

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?