What is the Higher Lending Charge (HLC) and how is it paid for?
An HLC is a single premium general insurance policy which protects the lender against losses on higher percentage advances (normally over 75%). Please note: • such insurance will not protect you if your property is subsequently taken into possession and sold for less than the amount you owe; • you will remain liable to pay all sums owing, including arrears, interest and your lender’s legal fees; • if a claim is paid to your lender under such insurance, the insurers generally have the right to recover this amount from you. While the HLC confers no direct benefit to the borrower, it enables Britannia to lend with a lower required deposit than would otherwise be the case. With share to buy, there is an HLC but this will be paid on your behalf by Britannia.
An HLC is a single premium general insurance policy which protects the lender against losses on higher percentage advances (normally over 75%). Please note: • such insurance will not protect you if your property is subsequently taken into possession and sold for less than the amount you owe; • you will remain liable to pay all sums owing, including arrears, interest and your lender’s legal fees; • if a claim is paid to your lender under such insurance, the insurers generally have the right to recover this amount from you. While the HLC confers no direct benefit to the borrower, it enables lenders to offer mortgages with relatively low deposits (e.g. 5%). Please note: generally, the lenders on our panel pay the cost of the HLC where the deposit is at least 10% and some do not charge for it at all.
