Pexus
Bank I work for looks at deals like this all the time, shouldnt be an issue at all
Wouldnt say Munsterdudes suggestion on two loans is strictly correct(sorry MD!! ) it might be but not necessarily.
Depending on level of mortgage relief you are getting (max c 127 pm or something) and amount of time you have left to recieve this it may make more sense to refinance into 1 loan all your investment properties as the higher level of interest you are paying here can be written off against your rental income.
e.g (rough example)
loan 1m @ 4% = 40k interest which can be written off against first 40k of rental income
loan 800k (less PDH debt) @ 4% = 32k interest, means you have to pay income tax on additional 8k rent @ marginal rate 42%= 3.3k tax
meaning youd need to be recieveing 3.3k mortgage relief to make it worthwhile putting in separate loan..
This is a v v simplified example to be fair, your accountant will put you right anyways (and I am not an accountant so this isnt gospel)!!!
Also benefit of having your PDH unencumbered in doomsday scenario you wont be on street
Pm if you have any other questions
DC