Getting a mortgage!

Biggie123

Hello iv managed to reduce my debt and boost my score currently at (567) and been paying on time for 2 years now I still owe about 3k of debt and was thinking to get a loan from my bank to pay this off and only have one payment instead of multiple? 

I don’t want this to be a negative on my score tho for the mortgage we are potentially applying for in June 2026 deposit is being gifted. So the question is shall I just keep doing what I’m doing nibbling away at it all or get rid pay one payment or is this a bad thing to the mortgage companies? 

RAS

You really want this to be on the mortgages forum.

But the starting point is that your credit score is pretty much irrelevant. It's an American thing, not GB.

What does matter is your credit records. What do those say? It takes 6 years for adverse reports to drop off your records. You can get all three for free, so look at them. 

It's unlikely that taking out new credit which will show for another 6 years is going to be better than paying off current debts.6

CliveOfIndia

As has been noted by the previous poster, you can safely ignore your score.  It's not used by - indeed, it's not even visible to - potential lenders.

For any form of credit, a lender will look at a number of factors.  They all have different criteria, but common elements are:

(1) your existing debt

(2) your income

(3) your credit history - have you been meeting your contractual obligations every month?

"Replace all your existing payments with one easy monthly payment", as the old adverts used to say?  Generally, no.  Unless you can actually reduce the APR you're paying substantially, then all you're doing is moving the debt from one vehicle to another.  And your overall debt is quite a major factor in mortgage lending decisions.

The main problem with consolidation loans is that a lender cannot force you to use the new loan to clear existing debts.  They therefore have to assume that the new debt would be in addition to - not instead of - your existing debt.  This will be factored into their affordability calculations, meaning you may be refused, or else offered a loan at a much higher APR than their advertised "representative" rate.

So in terms of a mortgage application, it matters not one jot whether your existing debt is with one lender or several.  As long as you're paying what you're supposed to every month, then that's fine.  But reducing the overall debt by making overpayments (if you're able to without penalty) will be viewed favourably by any mortgage lender.

ACG

If your going to do it, sooner is probably better than later. 
But there is not enough information to decide which is the better route.