Home with mortgage and second house

ftointonn

We have a home worth £135000 ish and a mortgage on it for 90000 with 20 years left. We’ve inherited a home  worth about £140000. Question is if we were to keep the second house to rent out would we be able to increase /add on  another £60000
so we could do some diy etc 
if so how and where we borrow it on ?
secondly we are self employed and over the last 3 years income was around £35000 each year (before that around 27000)  I am also about to finish paying a DMP . 

Thank you 😊 

K_S

@ftointonn If the numbers stack up, you could *potentially* release up to around £105k on the newly inherited property using a BTL mortgage and use that for home improvements on your home.

Even if the rental estimate is sub-par, £60k should be quite achievable on a £140k property. Your DMP might stop you from using some of the more mainstream BTL lenders who credit-score as part of the application but there should be others willing to lend on a low LTV on a BTL mortgage if you're only looking to release £60k. Probably one for a broker.

lspell1

As above, sounds doable. You may be able to get a decent rate, depending on when the DMP was originally registered.