The best way forward ?

T_J_A_8691

Were looking to remortgage in 13 months time-looking at the the best way to do this;  
Feb 2020 brought 50 % share part buy part rent. £944 mortgage an £389 Rent.
House value was £320000. Deposit £8000.
We have previously paid a lot of Debt off over the last 3 years but currently still owe £6500 each on 2 cards.Plus 6500 to a family member of which £1800 is being paid in jan (they are in no hurry for this but we would like it repaid.)
These are int free until Aug 2021 but looking to transfer these to another 0 % int card with a 0% fee if we can.(the card if accepted is for 20 months.)
Income is OH £41000 standard plus £3000 guaranteed overtime.
Mine £25000 plus small bonus which is not guaranteed.
1 dependant child  £1066 year Child benefit.
Were looking to save another £1200 a month from Feb to Feb 2021-2022 Paypal Credit to pay off in Jan 2021)
No Estate agent fees as we have to go through the HA for 12 weeks first and in our area these rarely go past that.
Were looking at a smaller house thats needs work-ie new kitchen/Bathroom/Heating etc to lower the cost.
We will save for any fees separately.Currently we have £1900 surplus each month more if its an overtime month. 
The house range we are looking at is £230000/£260000 with if ive calculated it right £25000 equity from home plus any extra from price increases etc.
We are already making some overpayments but these will increase next year.
My questions are: 
Are we better off using the full 20 month int free paying £300 a month and saving a larger deposit or clearing the cards before the mortgage application?
Make the overpayments off the mortgage or save in a savings account?
Thank you for taking the time to read such a long post but i wanted to get all the information in it.

MFWannabe

I’m a little confused by your post tbh 
To clarify: You currently own 50% of a shared ownership property which you are looking to sell for a new cheaper, smaller property that will require work? 

Your current mortgage is up in 13 months time? 

You have debts on credit cards which end in Aug 2021? You are looking to transfer these to another 0% card? Which would be for 20 months? But why would you do that now when your current cards don’t end until August? 

I would pay off the debt with the £1900 surplus you when every month, it will be paid off in 10 months 

T_J_A_8691

Hi,
Yes, we brought to get on the ladder, we have a 2 year fixed. 
Were looking to buy a house fully not part buy part rent.
The cards would be transferred using  a 0% transfer fee so will cost nothing to transfer -so will be well established by the time we need the mortgage.
I was looking to see what are the Pros/Cons of having a higher deposit with 2 small debts £2400 each rather than a smaller deposit with no debts and also do i overpay the Mortgage or save the money
This is from a mortgage point of view. The debts aren't attracting any interest.
We have an immaculate credit history, no missed payments,CCJs etc. 
Thanks

getmore4less

£320k  50% £8k deposit   £152k mortgage 

2 years at £944pm  what rate and full term?
say 4% 20 years that pays off about £10k

£18k equity before price rise.

~£20k of debt, 
income max £70k
say £2kpm excess that could pay off the debts and have a bit left over .

new place say ~£250k  maybe £25k-£30k  90% LTV and £220-£225k  mortgage

You will ends up with a bigger mortgage
then you need to save up to do it up.

T_J_A_8691

Yes, we are aware we will need a bigger Mortgage. Looking at £220000 .With the Mortgage and Rent we currently pay £1350 approx.So would be looking to stick around that mark.
Our current Mortgage is 18 years at 3.39.
The renovations will be everything we can do ourselves so the only cost would be materials.
My Question is in the next year do we pay the 2 cards off whist saving a smaller deposit or leave around £2400 on each card which will give us a higher deposit.From a mortgage point of view which is best?
also with the savings is it better to Overpay the Mortgage?

getmore4less

18y @ 3.39 will have you paid of ~£13k so £21k with current deposit not £25k

it will be an affordability and LTV balance 
can you get to 85%->80%->75% 
better LTV better the rates.
They are going to £13k chunks to move a LTV band.

bigger the debt the more it impacts affordability.

You have a bit of headroom on income, get a broker to look at it in more detail