Pre Mortgage advice

[2toastornot2toast]

Starting to look to buy. We have credit card and car loan. Are we best paying that off first or putting more into deposit?

I think if you speak to an impartial/independent mortgage broker, they should be able to advise on this.

Your finances are stress tested when applying for a mortgage, so as long as your credit repayments are very manageable for you, even if interest rates were to rise significantly, having car etc on credit need not necessarily be a barrier.

Don't apply for anything else on credit for 3-6 months before applying for your mortgage.

Depends on affordability and the size of your deposit.

A smaller deposit could mean you pay a higher interest rate.

Look on moneysaving expert for the first time buyers guide. Unless your loan and credit card are already low interest rate, it's probably worth looking for a balance transfer offer to reduce the interest you pay.

Also pay more than the minimum on the credit card so you don't get a minimum payment marker on your credit file.

Never go into overdraft even if it means using the credit card instead. Interest rate is higher and is viewed negatively by lenders.

Great advice thanks