Barclays Ups Maximum LTV to 90% for Borrowers With Existing Mortgages: What This Means for Homebuyers and Remortgagers

Introduction: Significant Policy Shift from Barclays Mortgages

Barclays Mortgages has announced a significant update to their lending criteria, now allowing up to 90% Loan-to-Value (LTV) for residential purchases and remortgages where applicants have an existing residential mortgage in the background. This increase from the previous 80% LTV cap provides new opportunities for UK homebuyers and homeowners looking to remortgage without redeeming their background mortgage.

Barclays’ LTV Increase: What’s Changing?

Barclays’ revised policy lets eligible borrowers access higher loan amounts without needing to clear their existing residential mortgage first. Key highlights:

• New maximum LTV: 90% (up from 80%), for purchases or remortgages when another residential mortgage remains in place
• Standard loan limits apply:
  • Houses: £640,000 maximum at 90% LTV
  • Flats: £310,000 maximum at 90% LTV
• Buy-to-let/“permission to let” background loans: These remain capped at 80% LTV

These changes benefit borrowers who want to move home or remortgage but keep their current main residence and mortgage, such as during a property chain or when letting out an old home prior to sale.

How Does the LTV Policy Change Impact Borrowers?

Barclays’ updated criteria address the growing needs of:

• Second Home Buyers: Those purchasing a new primary residence while retaining ownership of their previous home
• Home Movers: Upsizing or relocating without selling an existing property immediately
• Remortgagers with Background Mortgage: Seeking to switch rates while maintaining a second property

Applicants who previously were limited to lower borrowing (80% LTV) may now access greater finance, subject to standard loan limits and affordability checks.

Special Features and Clarifications

• No need to redeem the background mortgage: The increased LTV applies even if your current residential mortgage is not redeemed on completion
• Background “permission to let” cases: LTV remains capped at 80%—the 90% threshold is for standard residential cases only
• Affordability and underwriting: All lending remains subject to Barclays’ credit and affordability checks

Who Benefits Most from Barclays’ New LTV Criteria?

• First-time movers: Looking for their next home but want to keep the previous property for flexibility
• Clients navigating property chains: Need extra time to sell while already securing new finance
• Homeowners planning to let out their previous home temporarily: If this is not formally under “permission to let” status
• Applicants needing to maximise borrowing power: Higher LTV ratios mean a smaller deposit is needed on the new property

Why Choose Barclays for Your Next Mortgage?

• Flexible lending criteria: One of the few major lenders now accommodating up to 90% LTV with a background residential mortgage
• Clear product range: Competitive rates for homebuyers and those remortgaging
• Strong customer service: Backed by a major UK bank
• Solutions for complex scenarios: Ideal for home movers and those with multi-property requirements

Conclusion: Take Advantage of Barclays’ Enhanced LTV Lending

Barclays’ new LTV policy for those with background residential mortgages opens up greater flexibility for home movers, remortgagers, and second property buyers. If you think you could benefit from increased mortgage borrowing or want to explore how this affects your plans, contact our mortgage advisers today for expert, personalised advice tailored to your situation.

Ready to see if you qualify? Get in touch for a free consultation now.

FAQs: Barclays LTV Policy Update 2025

• Who qualifies for Barclays’ new 90% LTV policy?
  Applicants purchasing or remortgaging a residential property while keeping an existing residential mortgage, subject to standard loan limits and affordability checks.
• Does the 90% LTV apply to buy-to-let mortgages?
  No, buy-to-let and “permission to let” background mortgages remain capped at 80% LTV.
• How does this change affect my deposit requirements?
  With a 90% LTV, you can purchase with a 10% deposit instead of 20%, giving greater borrowing power.
• Can I apply if I have not yet sold my previous home?
  Yes; this update is designed for applicants who are keeping their existing property and mortgage.
• How do I find out if I’m eligible?
  Contact our mortgage team for a personalised assessment and guidance through Barclays’ updated lending process.