Mortgage Advice please

PierremontQuaker03

Hi,
just after a bit of advice:
I owe 30k on my mortgage, my house value is approx 130k in the current climate. I have 20k of savings and possibly will clear my mortgage next year, and I earn 40k per year.
I have seen another house I am interested in for 170k, but would require 20-30k spending on it, but then I would imagine that the house then would be worth 220k.
However, if I did purchase this new house I would not want to live in it while the work is being done, I would live in my current home, I suspect the work would take one year to complete. Then at the end of the rennovation I would either move into it, then rent out my current home, or rent that house out or sell it.
I am just wondering if there would be a way of financing it, say on an interest only mortgage just for a year to keep repayments down, then I would probably have to move to a BTL mortgage.....
Or would the best idea just to wait until my current mortgage is paid off,then I reduce the risk, then I could live in my current property with no mortgage but then buy a new house to do up.
I know I will have to speak to an independant mortgage adviser, but dont want to commit to things at this stage, just after some ideas.

dimbo61

Lenders are not doing IO mortgage in many cases unless you have a 30/50% deposit. Nationwide have now stopped all Interest Only mortgages and they are a BIG lender.
You have a lot of equity in your current home BUT you can not get this equity out unless you sell.
You cant have a BTL and live in the property.
Your best bet is to sell your current place and buy the new property with a good deposit but keep some of the equity you have at the moment and use that to complete the refubishment in 3/6 months while living either with family or a caravan on site !!
Please do not think that putting a new kitchen/bathroom/rewire will add value to a property in the current climate

ViolaLass

dimbo61 wrote: »

Lenders are not doing IO mortgage in many cases unless you have a 30/50% deposit. Nationwide have now stopped all Interest Only mortgages and they are a BIG lender.
You have a lot of equity in your current home BUT you can not get this equity out unless you sell.
You cant have a BTL and live in the property.
Your best bet is to sell your current place and buy the new property with a good deposit but keep some of the equity you have at the moment and use that to complete the refubishment in 3/6 months while living either with family or a caravan on site !!
Please do not think that putting a new kitchen/bathroom/rewire will add value to a property in the current climate

Surely you can - it's called a remortgage.