Frequently Asked Questions
What is a Higher Lending Charge?
A Higher Lending Charge (HLC) is a form of insurance cover which your lender may take out when you apply for a new mortgage. It is used in case you fall behind with your mortgage payments and they have to repossess your property and sell it.
If you are borrowing more than 80% of the property’s value then a HLC will normally be needed. The cost of the higher lending charge is paid by the borrower but occasionally a lender may subsidise this.
The previous name for higher lending charges was Mortgage Indemnity Guarantee (MIG). Neither of these will provide any benefit to the borrower.
Useful pages:
[block id=”faq-page-bottom-section”]