Mortgage for buying further share of flat

teckyiau

Hi, I currently have a 40% share of my flat and a mortgage with Barclays. I would like to buy the remaining 60% share. I remember Barclays explained to me, they will give me another mortgage in future running in parallel with my existing mortgage should I wish to buy further share, when I took out the mortgage.

My question is: if I go back to them to take out a mortgage to raise the 60% money, will they base it on a LTV 60% therefore I get a lower rate?

I have searched the forum but could not seem to find the answer so I post it here.

Thank you .

ValHaller

The LTV will be based on the amount you will owe in total as a percentage of the value of the property at the time of borrowing. Remember, you are unlikely to do much better than 90% LTV, so unless the value has risen since you bought or you have paid off at least 25% of the current mortgage, you may find that you cannot borrow the full 60%.

If the value has remained static and you have paid nothing off, you will only be able to borrow 50% - less if the value has fallen.

Unless values rise noticeably, I think in your position, I would be looking at paying down some of the current mortgage so that when I did get another mortgage I could be sure of buying all of the remaining 60%