Buying first home, advice please

buyingin2023

Me and my partner have 15k already for a deposit, this time next year we will have 18k without saving anything extra, just from bonuses from lifetime ISA and help to save scheme (been on UC while I was on mat leave). However obviously we will be actively saving on top of this so we will have more! We've been getting by for the past year while I was on SMP and my partner working agency shifts so not been able to save properly during this time apart from £50 a month in help to save which is all we could spare. I'm going to be in full time work and my partner is hopefully going to get a part time job (rather than agency) so he has stable income for mortgage application as well. 

The thing is I have 3k on a credit card. It is 0% for the next 28 months, nothing else will be put on this card as it was only opened for one balance transfer for a necessary large purchase. I do use my other credit cards for all purchases to make use of paltry cashback as well as some added security, and this is always paid in full every month. I could easily use 3k from savings to pay off the balance transfer card. Basically, is it better to have the 3k towards a deposit or have 3k debt when applying for a mortgage? 

We also have some bits on interest-free finance and in total the repayments will be £74 monthly but will only have a year left on these when we plan to apply for a mortgage. I assume these won't be a problem, or is it worth paying it off? This includes a mobile phone on contract (partner's choice). We don't have a car on finance.

I have £15k available credit on credit cards. Is it good or bad to have this amount of available credit? My credit utilisation is always low. I always thought it was good to have more available credit with low utilisation, but someone told me it can go against you in a mortgage application.

We are just going to buy something small and cheap, I fear we will be saving forever otherwise and will miss our chance to get on the property ladder. This is why I really want to start the process next year!

[Deleted User]

How much do you want to borrow?

buyingin2023

The amount we will borrow depends on the property and what our salaries will be. Mortgage between 80k and 130k really. I am hoping we will be earning well enough to be able to borrow more for the right home.

buyingin2023

I have played around with some mortgage affordability calculators to get an idea but the results seem to vary a lot.

twoLou

I wonder if asking on the Mortgages & Endowments board would help you more as there are some knowledgeable brokers and mortgage advisors on there who kindly give advice.

buyingin2023

Can the thread be moved to that board?

twoLou

buyingin2023 said:

Can the thread be moved to that board?

I'm not sure, hopefully you can - perhaps message one of the board guides that have the top thread of this forum (MSE_James it looks like)