Move mortgage or sell-up for next project?

Skelet

Long time lurker, just registered to hopefully get an answer/feedback to my current predicament. Maybe the MSE experts can advise?

My wife and I purchased our first house, a do-er upper in May 2012 for £200k. 3 yr fixed at a terrible rate as we took the option of a lower deposit to free up cash for the do-upping.
We've now completed the substantial renovation, some walls down (building regs compliant), whole place re plastered, new flooring, all new electrics, all new plumbing, central heating, kitchen, bathroom, landscaping. I've been able to do most of the work with help from my father so costs have been kept fairly low. We're looking to sell with a completion date of 1st June-15 which is the three year anniversary of our purchase to avoid substantial exit fees from the 3 year fixed mortgage.

Though renovation costs have been lower than paying someone else to do it, we're still left with £30k of cc debt on four maxed out cards. The total cost of the renovation has been in the region of £37k (with most labour being foc. Our wedding took a chunk out of any other savings we had).
We have £170k left on the mortgage. Recently two estate agents valued the house at £315k. I think that may be hopeful but would expect to sell in the region of £300k.

The current plan is to sell up and move back in with my father whilst we look for the next project (we have no kids and there is plenty of space, he would love the company! We plan to do at least another 3-4 properties in this manner!) The idea behind selling up is to keep out of chains when selling/buying and enabling us to clear the cc's and mortgage with the equity then using what's left to do another project, with a 1-2 year max turnaround.

Our combined salary is £60k we both get bonus payments but they aren't guaranteed. Both full time employed, no kids on either side, no other costs or debts or car finance etc. Just one mobile contract. Credit history was pristine when we got our first mortgage and apart from the debt no missed payments or anything since.

Ideally I would like to be able to look for properties up to the 300k mark, not sure if that would be possible with our wage/potential deposit?

My main question is, if we went with option A, as above, would we run into problems getting a new mortgage having the history of running the debt up? Hopefully they would understand the reasons but I'm wondering if computer would still say no?

Would we be better off going for option B, finding our next do-er upper and transferring the mortgage which will revert to 'standard rate' from 1/6/15 and clearing the cc debt along the way.

I'm very reluctant to go this route as waiting for the right property to come along with the right amount of work needed/potential could take several months and I would much rather avoid chains.

Sorry for the ramble! Any thoughts?

Thrugelmir

Sell the property and clear your expensive credit card debt. Which very slowly is eating into your notional profit. By moving back in with your father you can continue to add savings to your funds. Then you plan your next property purchase in a leisurely fashion. While allowing time for your credit history to normalise.

Skelet

Thanks for taking the time to read my essay and for your reply, in either case we would clear the cc debt. Thankfully the bulk of the cc balances are on 0%. I would transfer the remainder but am wary of applying for another card!

The aim of future renovations would be to avoid using cc balances to fund the work. ( though I plan to utilise a cash back cc, paid in full each month)

How long would it take for things to normalise? I'm keen to get on with the next project and would ideally purchase something ASAP.

Thrugelmir

Skelet wrote: »

How long would it take for things to normalise? I'm keen to get on with the next project and would ideally purchase something ASAP.

As you'll be cash rich. With no debts owed. Shouldn't take long at all. You've a property to sell first. So a few months could quickly pass by.