BEWARE Higher Lending charges

jiblets1

Our IFA is my fiance's father, and so is extra vigillant when helping us with our mortgage. We were accepted for a mortgage this week and were most surprised to see a higher lending charge of over £1600 when we knew full well that OH's father had done a search that excluded them.
We eventually got to the bottom of it, and we were being charged the HLC because the house is worth 179,995 and we had put in the mortgage as 180k. This pushed us whatever tiny decimal of a percentage over the 90% we were borrowing, and so we were being charged the HLC. The most frustrating thing is that had I not spotted it in the mortgage offer, they would have automatically added it to the mortgage as a whole had we not paid it first. This would have cost us more like 4k over all! All for the sake of a fiver on the mortgage!:mad: :eek: :mad:

I don't know if this is common practice, but we were most taken aback. Thankfully future F-I-L has sorted it all out for us. So take care to get your figures spot on!

regularsaver1

Surely he would have realised what lenders charge HIL's and what don't and that you were going over 90%. Not lenders fault ??

jiblets1

Halifax charge you a HLC if you put down less than 10%. We managed to be £5 underneath that, and I thought it was very tight of them to essentially try to charge us £4k for it!

All sorted now though, thank goodness.

regularsaver1

I was just confused when you said your IFA had done a search that excluded HLC's but then went for a lender that charged HLC's

jiblets1

Yeah, so was he!
lol