Definitions for "Higher Lending Charge"
Where the applicant is borrowing a high percentage of the property cost to reduce the risk the lender will take out insurance cover. The cover is there to ensure that if the borrower defaults and the lender is forced to sell the property the lender will receive the full value of any outstanding loan. These have previously been called mortgage indemnities or MIG's but they certainly are not insurances for the benefit of mortgage holders and their implication should be fully understood before entering any agreement with an HLC. Please ask your Adviser for a fuller explanation.
Fee or premium sometimes charged by lenders if your mortgage represents a high percentage of the propertys value.
a fee paid by mortgage borrowers to protect lenders which lend them more than a certain proportion of the value of their home