JARGON BUSTER

A I B I C I D I E I F I G I H I i I J I K I L I M I N I O I P I Q I R I S I T I U I V I W I X I Y I Z

(H)

Higher Lending Charge : This is a premium charged by the Lenders in order to indemnify themselves, and NOT the borrower, against any financial shortfall they may incur in the event of repossessing a property which must then be sold at a loss. It is applicable if the amount required is higher than a certain percentage of the property value, usually 75% LTV. Often the Lender will pay the cost of this insurance themselves between 75% and 90% LTV. The charge may either be added to the loan or deducted from the advance on Completion.
Also Known as: Additional Security Fee, Indemnity, Mortgage Indemnity Guarantee (MIG).

Homebuyers' Report : See Valuation Fee.

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