Hi, your figures are certainly good and promising and you have my sympathy as there are a few options open to you and everyone will no doubt tell you that 'theirs' is the best way to go! At the end of the day, follow your own instincts as to what 'feels' right for you personally. Dummies don't earn joint incomes of £100K!

As you are already committed to a £1400 monthly mortgage repayment, I personally would suggest that you pay off any expensive credit cards BEFORE committing your finances to a further mortgage of £95k plus. Remember also that if you do decide to sell the property after three years and presuming there is a profit to be made by then, you will be liable to capital gains tax. Mortgage interest can be set against this and so it is important for you to keep complete records of expenditure toward this 'second property'.

Good luck with whatever you decide.