Mortgage to allow devt of new house

FlyingHippo

Hi
Can anyone advise.
I do not have a mortgage on the house that i currently own and live in except for c£400 in total which I decided not to redeem (this allowed me to preserve the 'overpayment reserve' for a rainy day). The overpayment reserve is 80k. The morgage is with Nationwide.
I have agreed a price on a new house. It is too small but in a good location! I would like to buy it but continue to live where I am until the extensions are complete.
So effectively i could do with a cheap one year (or two) mortagage that I would be able to pay a large sum off once I sell the first house.
When I go into websites I don't know whether I am effectively a 'first time buyer'.
I will be buying the house for 390k and can raise up to 100k for a deposit (possibly more if I had to). I was thinking of then drawing down some of the overpayment reserve to pay for the extension.
I am well paid so repayments (and mortgage multiples) should not get in the way. (I hope).
I would appreciate some advice. I am concerned that i could fall outside most standard mortgage situations. i would hate to sign up to a mortgage and then find that the lender drops out because of the unusual situation.
Thanks everyone
Hippo

JonnyBravo

You won't be able to go for FTB mortgages, any search will still show you have a mortgage even if the amount owing is tiny. No matter though..... I'm not aware of offers to FTBers being so good for that to be a major worry is it?

I'm sure so long as you're up front with a prospective lender it will be fine if it all stacks up on the LTV and multiples front.

We did something similar last time we bought (5 years ago).

Use as little of your money as poss to get a good deal on the mortgage but to keep some cash to help towards the building work, sure, then use some of that overpayment pot.

You don't want to tie yourself into deals for too long as when you're all completed on the works you want to be able to remortgage as you see fit.

The important thing is being upfront with the lender and as I say so long as the LTV and income multiples stack up it'll be a doddle.

dimbo61

Consider offset mortgage so you can pay the money from the sale of your existing home into the offset account once your new extended home is ready.
I am with YBS and they do 2/3/5 year fixed rate deals
also First direct offset mortgages ?