One mortgage on two properties?

[LalasMama]

Me and DP currently have a mortgage on our house. The mortgage is for 109k but the house is worth about 150k (last valued in march).

A friend of a friends house is going to be repossessed in the next month or so and they have offered us to buy the house for a quick sale for 60k. (The house was valued earlier in year at about 90k). This house is in major need of a facelift (new kitchen, bathroom, most rooms need plastering etc, garden). Would need 10k just to make it livable.

Our plan is to buy this house and do it up. We would then either move into it and rent out our existing property. Or we would sell one or the other.

What i'm basically asking is if I would be able to put this new property on my existing mortage to keep everything in one place? Or would I have to take out a seperate mortgage?

TIA :)

I have one mortgage for two properties, so it is possible.

I think you'd need to consult your mortgage provider. Your current mortgage is specific to your house which is valued at a certain amount and used for a specific purpose i.e. your main dwelling. If you're thinking of renting out either property then you're in the 'buy to let' arena where the products available are rather different. If you could borrow enough extra money against your first home and use it to buy the second house, that would be slightly different.... but it doesn't look as though you have £70k equity in the first home.

Cog is correct, you don't have the equity to release. However you may be able to get a buy to let on the other property. Either speak with your mortgage provider or an independant mortgage consultant.

Thanks for the advice. Forgot to mention that we have recently inherited a sum of money that we were planning to put towards the property. Had our mortgage accepted in principle yesterday and put in an offer on the property this morning that has just been accepted :)

How exciting. Good luck with it LalasMama.