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Higher Lending Charge

A Higher Lending Charge (HLC) is simply a charge made by the Insurer, the insurer, may use some or all of this to purchase an insurance policy. For this reason, the premium is usually taken out on loans that exceed 75% of the purchase price. Our product guide will tell you if a HLC applies and how much it will cost. The main thing to remember, you don't always have to pay the premium up front, the lender will generally allow you to add the premium to the loan even if it takes you above the maximum loan to value.

Tips and Tricks:
The percentage for HLC's charged by the lenders varies from one lender to another so be sure to look carefully at our product illustration sheet where we will tell you what the charge will be. Another thing to look for are HLC free' deals. Sometimes lenders offer inducement's for particular products. The inducements can be 'Cashbacks', Free Surveys, Free Legals or no HLC charges. Remember we will always tell you what a particular product has to offer by way of inducement's or if there are none at all.

So that you can see what the possible cost of a HLC will be we give an illustration below.

HLC Example

Purchase Price   £100,000.00  75% of Value - £75.000.00  Mortgage Required   £95,000.00  HLC Cover needed on - £20,000.00  HLC % = 8% - £1,600.00

So the cost of the HLC will be £1,600.00 on £20,000.00 if the lenders percentage is 8%. Remember though, watch out for the HLC percentage charge on our product illustrations.

Your home may be repossessed if you do not keep up repayments on your mortgage.

A fee may be charged for advising on or arranging mortgages of between 1 and 3% of the sum borrowed. The exact amount will depend upon your circumstances but we estimate it will be 1% of the loan amont.