Concurrent mortgages on different properties

Roy69

I’m looking to buy a property at auction at around £400k which needs renovation and updating works of about £86k to be completed before I would move in. Its in a habitable state but needs some structural work, new flooring, new kitchen and bathroom etc and i don't want to put the family through that.

I have 65k savings and can get a mortgage to cover 80% of the current value of the house. Assuming that its actually worth 400k, after expenses and taxes I would be left with 16.5k in cash so would need to raise an extra 70k or so to pay for renovation works.

I own my current home outright which was valued at £250-275k in august and would like to mortgage it to raise the 70k to pay for the renovation works. Once the renovation works were complete I would then sell the original house and move into the renovated house and use the remaining balance from that house to clear the £70k mortgage, spend approx £100k on an extension and reduce the £360k mortgage by 60k or so.

Unfortunately my proposed mortgage lender says it is not possible to run two mortgages concurrently even though they are secured against different properties. Is this correct? They suggest getting a bridging loan which they will broker but which I suspect will be expensive.

Is it possible to have two concurrent mortgages on different properties? or would it be better to use something like an accelerator mortgage, but this seems to have a limit of 300k.

Thanks Roy