Bigger deposit and more debt or visa versa?

Thewannabedebtfree

Hi,
I have a couple of options and would like to know which option is best. 

Debt
Admiral / APR 10.8% / £212 month / £10928 in total / Ends 2030

I can either pay this off and have around £31k Deposit - being debt free OR have around £41k deposit and keep this debt. 

This is following a relationship breakdown, and the house selling. So the mortgage will be on my own eventually. Was going to put the savings into a high interest savings account, while I rent in a different area. 

Thank you 

Tabieth

When does the debt end? (It says 2023)

I’d pay off the debt, or move it onto an interest free balance transfer credit card. An APR of 10.8% is pretty hefty! 

Hoenir

Pay off debt at 10.8% and borrow at nearer to 4%.  Financial sense. 

Martico

Pay it off. You're paying a hefty 10.8% - you'd not come anywhere close to that on any savings rate

Herzlos

Unless you need the extra money to hit the minimum deposit, you're better off clearing the debt. 

brown_crow

Because the personal-loan rate is a steep 10.8%, every pound kept in that debt costs far more than it can earn sitting in even the best savings account, so—unless the extra £10 k deposit decisively pushes you into a cheaper mortgage band (e.g., from just over 90% LTV to just under 85%)—you’re almost always better off using the sale proceeds to clear the loan, keeping a modest emergency buffer, and then rebuilding the deposit with the freed-up £212 a month; this both guarantees a risk-free “return” equal to the 10.8 % interest avoided and strengthens your mortgage affordability without sacrificing meaningful rate savings.

RHemmings

I'm hesitant to post in threads like this because I'm so biased against having debt. But, I was pleased to see the direction the average opinion in this thread has gone.