Use equity for next property or pay off credit card debt?

Stevo34

Help!
I need your advice!!! We can't sell our property so are looking at renting it out. My current mortgage provider has said they can change the mortgage to a Consent-to-let, which is great. They've also said they're prepared to provide a loan-to-value upto 90% of the property which means we can borrow from them an additional 28,000 towards the purchase of the next property.

However! We owe 23,000 in credit card debt which we're having to pay 400 to each month. So i'm left with a choice:-

1) Borrow 28,000, and use 23,000 of it to pay off the credit cards. Apply for a Halifax mortgage where they offer a Vendor Gifted Deposit scheme which is in effect offering us a 95% mortgage. This ups the rented properties mortgage to around 700 (a hike of 270) with a rental value of 575pcm so we'd need to fund the additional 125pcm. The remaining money incidentaly from the 28,000 (5,000) would be used entirely for the moving fees. So the next property we buy would be valued at say 160000 with our new VGD Halifax mortgage works out at around 1100pcm which seems a lot BUT there's no credit card debt to pay on top of that.

2) Borrow 25,000, use 20,000 as a deposit & 5,000 for moving fees for the next property. No credit cards are paid off. No need to apply for a Halifax Vendor Gifted Deposit mortgage which gives us better rates & a lower monthly fee to pay, between 850 and 950. The benefit of this is we have less to pay each month BUT still have the minimum 400pcm credit card bill so in total need to fork out, oh and the additional amount on the rented property of around 100 which takes it to say 1400pcm!

3) Borrow 28,000, pay off 13,000 on credit card debt (leaving 10k credit card debt to chip away at). Put 10k down as a deposit (leaving 5k for moving fees). This then strikes a balance between paying off some CC debt and getting a better mortgage rate. By paying off the nastiest CC bills this reduced the 400 a month down to say 150. The existing property rented out will still need 100 a month to meet the mortgage value though. The new property's monthly fee will be roughly 1,000 so combined with 100 from the other property & 150 on remaining CC debt that totals 1250pcm.

So i think i've got it all down, this is the dilemma i'm faced with. What should i do, is it always best practice to use as much equity as possible for the next place, pay off ALL the credit card debts and go with this Halifax Vendor Gifted Deposit scheme OR strike a balance between the two?

Really hoping someone can give some advice on this one as we really want to get this sorted!!

Thanks,

Steve