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Pay off debt or bigger mortgage deposit?

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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?

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Depends  two of the key interactions 

    Borrowing capacity
    LTV(which determines the interest rate )
  • 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? 
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