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Urgent Re-mortgage Question

Hi folks, need some info rather fast. We have been offered an interest only mortgage on a second property to move the MIL into, its at 6.4%ish, no penalty for early repayment nor set up fees, its for a term of 5 years but aiming to pay the whole thing off in a very short period of time, we also have to pay the broker £300+ for a valuation.
Our own home is valued at 350K and now have no mortgage on it, Another broker has found us a similar product with the C & G at around £75 a month less but suggested re-mortgaging our own property for the 100k with the same no early penalty clause etc, does this make sense.
Liquidity is when you look at your investment portfolio and **** your pants
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