Staircasing to 100% - Shared Ownership

Darkness

I bought a 50% share (£52000) in a house almost two years ago and I got a mortgage with Nationwide. My two year deal with them runs out in January and at that point I have enough money to pay off the rest or vast majority of the mortgage. I want to lend more money to buy the other 50% share of the house but I'm not sure how to do it. I'm pretty clueless about mortgages in general.

I looked on Nationwide's site and they have options for 'Existing Customers - Borrowing More' and 'New Customers - Remortgage.' Basically am I allowed to borrow another £52000 on the existing mortgage or do I need to pay that off completely first and get a new remortgage as a new customer?

ACG

You can take out whats called a further advance for the extra money.
This means you will have your original mortgage and the further advance running side by side. There will only be 1 direct debit and both accounts will mostly likely be linked so for all intents and purposes it will seem like just 1 mortgage.

2 things though:
1) With staircasing, the additional part that your purchasing will be based on whatever it is valued at now as far as im aware, so if its gone down in value, thats good for you if your buying as it means you can borrow less. If its gone up in value then you will need to borrow more.
2) If you have the money to pay off the mortgage, why not just purchase the additional amount using the savings you have rather than worry about getting an extra mortgage?

Darkness

Yeah, I'm aware I'll have to do a new valuation. I am hoping the 50% share will be valued lower than £52K when they do a new one.

And I don't have that much saved up. Only about £16K which will be used to pay off the current mortgage come January.

kingo30

In the current climate is it not better to over pay the mortgage each month then to save a lump sum like your £16000 with the bank and then pay off ??? I would have thought you could have paid much more off in the two years ?

getmore4less

If prices are static(ish) look at the costs and the rent you pay on the other bit.

MIght be worth continuing to rent if that is less than the interest on the equivilent mortgage