Higher Lending Charge

Lending a higher proportion of the purchase price of a property brings with it a higher risk to the lender. This risk is alleviated by an HLC which provides the lender with a form of insurance. If you cannot repay your mortgage, and the lender is forced to sell your property for less than your outstanding loan, the shortfall may be claimed back through this insurance.

The HLC will depend on the amount of loan compared to the value or purchase price of the property (whichever is the lower). This amount is shown as a percentage and is described as the Loan to Value (LTV). For properties up to 90% LTV, we will pay the Higher Lending Charge.

Do I need to pay an HLC?

When you take out a mortgage, you make a personal promise to repay all of the money which you owe under that mortgage. This promise still applies even if we pay the Higher Lending Charge. If we need to make a claim, please note that you will still remain liable for any shortfall.