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Higher Lending Charge

Some lenders may ask for an additional fee from those wanting to borrow a high percentage of a property's value, in order to cover the higher risk that they may not get all their money back should something go wrong.

In practice it is just one more factor in the mix – some companies will market a low rate but have a high higher lending charge (HLC), while another will shout about having no HLC but may charge a higher rate.

A mortgage adviser's job is to identify the best overall package for you, and HLCs are just part of that process.

Your home may be repossessed if you do not keep up repayments on your mortgage.