Thanks for the replies!
I'm hoping I don't have to sell it, Mr Mortgage advisors thinks on my salary I should be able to got 150000 100% mortgage so I'll use the deposit to settle my car loan. Fingers crossed else autotrader it is!
Don't do it!!!! You will pay alot more settling your car instead of doing a mortgage deposit!
Say you have 3 years to run on your car. You will only pay for 3 years.
Pay it off and have a bigger mortgage will mean you pay over 25 / 30 years (or your mortgage term).
Say you have 10k deposit. You can pay off your car but borrow £10k more on your mortgage. Over 25/30 years, you will pay more like 20-30k.
That will cost your dearly over the term!
Make a bulk payment to your car finance if possible (not loads, say 10% of what you owe) instead of the whole job.
The more you can shave off your mortgage, the better. Remember the mortgage term is far more than your car finance term!
150k mortgage @ 6.08% x 25 years = £985.27 a month / £295,581 total paid
140k mortgage @ 6.08% x 25 years = £919.59 a month / £275,877 total paid
Difference over 25 years = £19704
If you are mortgaging over 30 years
150k mortgage @ 6.08% x 25 years = £915.89 a month / £329,720 total paid
140k mortgage @ 6.08% x 25 years = £854.83 a month / £307,338 total paid
Difference over 30 years = £22382
You see the difference (not even taking in account that mortgage rates will no doubt climb a little higher and make it worse!)