UC and Inheritance - Should I pay off debt or use for house deposit?

ElleWoods

theoretica said:

ElleWoods said:

Obviously once the money is gone, it’s gone...

Not entirely.  You are currently paying £325 or so a month towards your debts.  If you paid the debts off, would you and could you really save that much to refill your deposit savings?   Or would it get spent?

I think you might want to go and talk to a free mortgage broker.  Would £20k deposit, or whatever you best calculation of what is left and the mortgage you can get on your current income (and debt situation) combine to realistically get you a property straight away?

I think I’m going to lay off the debt (less the SL), then see where I am then.

ElleWoods

TELLIT01 said:

Having the deposit for a house is only the first, very small, step.  Finding a lender who would provide an adequate mortgage when the only income is state benefits will be difficult.  Even if you get past that step, the running costs for a property you own also need to be considered.

The general advice on these forums to anybody on benefits and thinking of buying their own property is - don't.

I work, so benefits aren’t my sole income, in fact I only get a small amount of UC as my child is over 18. 

I’m going to pay off the debt, the. See where I am then.