When you take out a mortgage, you agree to repay all of the money that you owe under that mortgage. If you fall behind significantly with your mortgage payments, although we will work with you to help you manage your circumstances and arrears, ultimately we may have to repossess your property and sell it.
Following repossession, when the property is sold it may not achieve a sufficient amount to cover your outstanding mortgage, resulting in a shortfall.
Where we are lending a high proportion of the purchase price or valuation (whichever is the lower), referred to as the Loan to Value (LTV) there is a greater risk of a shortfall and therefore loans like this represent a bigger risk to us. In order to reduce the increased risk to us of these higher LTV loans we may ask you to pay a Higher Lending Charge (HLC). Please note however that even if you pay an HLC you would still remain responsible for repaying all the money you owe under the mortgage including any shortfall.
|
LTV |
HLC payable? |
Who will pay the HLC? |
|---|---|---|
|
Up to 90% |
No |
N/A |
|
90.01% - 95% |
Yes |
You |
If your loan is above 90% LTV the amount of HLC payable by you will be detailed in your Key Facts Illustration.
However, as our maximum LTV varies, we may not currently lend or have certain products available, at or above 90% LTV, therefore please contact us for confirmation of our current LTV limits.
Yorkshire Building Society is one of the largest building societies in the UK. We offer a range of financial products and services including: savings & investment accounts, insurance products, loans, mortgages and more.
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Yorkshire Building Society is authorised and regulated by the Financial Services Authority (FSA).