Sell now, rent, buy 6mths, good idea?

nodebt_2

We're on verge of putting house up for sale to release some equity to pay off £40000 debts. Tried to remortgage with 75% LTV but wouldn't do cos we'd remortgaged to consolidate debts a few years ago! Explained we realised the error of our ways, but building societies twitchy with consolidation - understandable really. I wasn't 100% comfortable with it either as we are now both committed to sorting our lives out financially. Our dilemma is, if our house sells, would we be better renting for a few months to give us time to find our 'forever' house as we don't want to move again anytime soon. This will also mean we can save some more money for bigger deposit. Our worry is that house prices suddenly rise and put us out of our preferred market? Have agonised over selling house, but also feel really positive about ridding our debts, planning our future with daily budgeting and sleeping better at nights! Realise probably need crystal ball to answer the above, but your thoughts on any terrible pitfalls of doing this appreciated.

anotherpaul_2

In your position, that's what I'd do (assuming my partner would let me!). Of course, with hindsight, it might turn out to be the wrong choice. Personally, I think prices are not going to shoot back up and will probably go down a bit more, but I have been known to be wrong before.