Mortgage advice - What should we do?

Swampy3k

Greetings fellow MSE'ers! I have not been on MSE for years as I had thought I had sorted myself out and was savvy however I find I am back again as my wife and I are unsure what we should do and I figure that several heads are better than 2.

To give you a bit of background;
We both live in Scotland, in a house I solely own, which has an outstanding mortgage of around 36000 and a value of £93000. I pay £450pcm and it has 7yrs 7months left. I earn 35k pa and my wife earns 30k pa.
Unfortunately we have some alot of debts which i'll list below
Mines
Loan 1: £10978 owed at payments of £297pcm at 10% interest
Loan 2: £4793 owed at payments of £243pcm at 8% interest
CC: £4375 owed most of it 0% for another 12 months, around £500 paying interest on, I pay around £55 pcm.
I also owe my dad £9000 and I have done for over 5 years. I make 0 payments and feel bad about it despite him saying not to worry he's written it off. well I haven't.
I have also looked into laser eye surgery but as i'm almost as blind as a bat it would cost me almost £9200.
so as you can see I pay £450 PCM on my loan and £595 on payments which is a frightening £1045 on what I class as major bills alone before we even touch things like utilities, food and fuel.

young wifey has
loan of approx £7000 and pays £209pcm
CC of £3400 and pays £35pcm
CC of £2500 and pays £75pcm

as you can see this is a lot of debt for us. I have been looking into ways to resolve this and one of which was a remortgage where I was approved to borrow another £34700 in which I could clear up most of our debts, unfortunately as I said it was for debt consolidation the bank could not increase the term and it would push the payments up to around £903pcm. This does work out cheaper PCM but will take longer to pay and most likely cost more. However I would like the simplicity of just 1 payment and never getting in debt again. This isn't a done deal as the bank are sending me the paperwork and i've yet to sign or receive the money and I have a cooling off period where I can change my mind. Unfortunately the plot thickens and we are definitely in need of a bigger house as when I bought this one (pre wife) it was intended as a wee bachelor pad, unfortunately time marches on, We have a 2yr sprog and wifie owns a horse so we are looking to move into a bigger house + land so we can expand the family and have land for the horse beside us which would in turn save her about 2hrs a day and around £250 in stable rent charges etc. I do not want to sell my current house as I see it a long term retirement plan and I am thinking of renting it out. but im unsure how this works out with buying a new house. My wife has looked for sole mortgages and she can get up to £150000, but we have been advised if I join her on a joint mortgage I can do so, I assume they will subtract the debts and give us somewhere in the region of £200k-£250k? I have been advised that if I do go in with her then we need to pay a sort of mortgage tax of several thousands of pounds dependant on the house we buy value. 
The good news is we have around 8k in savings and we have our health and we are happy which is the main thing to us (debt excluded of course) 

Hang with me, we are almost there!.
I am unsure if we should
A: remortgage the house, and use it to pay off debt?
B: remortgage the house, rent it out & use the money to pay off debt and buy a new place with the wife?
C: remortgage the house, rent it out & use the money as a deposit for the new place with the wife?
Don't remortgage, struggle on with debt repayments and still look to buy a house and rent this one out?
E: Don't remortgage, sell the house, use some money to pay debts and rest for a deposit on a new house?
F: anything you wise folks can think of as it's starting to hurt my brain as i've been wracking it for days...

My head says E but my heart wants to keep a hold of this house "just in case". i've tried justifying it to myself using everything to "its a free house for the kid when she grows up which gives her a good start in life" to "it'll help come a the apocalypse" (unsure how..) 


any advice or suggestions appreciated!
be kind.

Thanks in advance. 
D&S

dimbo61

You have alot of debt, a 2 yo child and a horse all of which cost money.
So you want to become a Landlord as well.
Sell the house clear your debts and buy somewhere you can both afford with the deposit you have left and what the bank thinks you can afford.

getmore4less

Why are you borrowing money at 10% to save at near 0%.

You have  £50k+ a year net income, work out where it is going and where another £40k has gone before committed to a bigger mortgage. 

julicorn

I have to agree with getmore4less here. It looks like you've become really reliant on credit/debt, and none of your options get you out of that cycle. I'd say the debt-free wannabe board should be your starting point, rather than shuffling debt around or taking on even more. 

getmore4less

Adding it all up you should have £2.5k a month to pay the bills and live. 
As said debtfreewanabe with some proper planning with a forward looking budget would identify what you can afford to do. 
Especially if you want more kids that will impact earnings and costs significantly. 

You may need to assess your priorities as a lot of money has been going somewhere. 

Sofee3

Has to be E, clear debt start again in a place you both own and with no debt can get a bigger mortgage.