Porting - Will I have to pay HLC again??

nknash

Hi,

I am looking to port my mortgage across to a new property but the mortgage will still be 95%. When I initially took out the mortgage it was also 95% LTV and this incurred Higher Lending Charges. My question is whether this would mean I would need to pay Higher Lending charges again on porting the product?

Many thanks for any guidance!

silvercar

I would expect so, as a new property means a new lending decision.

Balance out the costs of any redemption penalty with the costs a the HLC. Some lenders don't charge HLC so may work out cheaper.

nknash

silvercar wrote: »

I would expect so, as a new property means a new lending decision.

Balance out the costs of any redemption penalty with the costs a the HLC. Some lenders don't charge HLC so may work out cheaper.

Thanks, I was worried this may be the case. I am thinking I may sell up and pay the ERC fees and jump off the property ladder for the moment, then I might get myself in a better financial situation.

luckyfool

It depends on the loan to value of the new property, and the lenders criteria for their HLC. The HLC may kick in at anything from 75% to 90%. If your original property was 95%, but due to equity built up you are able to put down 10% on the new property then depending on the lender and the product you are on then an HLC may not be chargable.