Re-mortgaging

I'm not sure if this is even the correct forum for this query,but here goes-we own our own house(well,some of it!) E105,000 mortgage on it.We've inherited a cottage next door (wife's home place) which will need money spending on it.It's valued at E200,000.We're still not sure about the inheritence tax situation yet,but we're hoping.........!!
What I'd like to know is what'd be the best way to finance the improvements/renovations on the cottage WITHOUT incurring too big of repayments?Our mortgage is with INBS (waiting for demutualisation) & they're not the cheapest on the market.If I was to go with another lender & do the 2 houses together,would I be saving in the long run?
Sorry if this is a bit all over the place!
Thanks!

The cheapest way to borrow to fund the work needed is to extend the mortgage on your home. INBS are not the cheapest, but the extra bit will not be significant over the short term. Try to get an additional mortgage from them secured on your home.

After the demutualization, you can switch your mortgage to the best lender.

What is your plan for the house? If you are going to use it as an investment, then pay off the home loan bit of your mortgage first. You will get tax relief on the interest paid on the investment property.

If you are getting it valued for probate purposes, some valuers tend to put a low value on it. If it does not attract Capital Acquisitions Tax, then it is not in your interest to have a low value. A higher value will mean that you will pay less CGT when you go to sell it.

Brendan