Higher Lending Charges

irishspur

Help needed!

Six months ago we took out a 100% mortgate with RBS woth a 5k higher lending charge, the flat we moved into wasn't all it cracked up to be so we decided to move our mortgage(same terms,rates,same mortgage!) to another property, they've stung us for ANOTHER 4k higher lending charge:mad: :mad: :mad: , is this legal or are we just unlucky? 3 people at RBS have told us we have to pay whereas one told us we didn't. anyone with some info would be greatly appreciated

homer_j_3

well the HLC is an insurance policy for the lender. I am not 100% sure of how these policies are set up behind the scenes to be fair but I could see a valid argument that if the insurance is tied to the purchased property and is non transferrable for the lender to another property then you will be asked for it twice.

You should have been made aware of this charge before you committed to it surely. Albeit if your need to move was that great, it wouldnt have mattered as you had to do it. It would have been either the early repayment charge or HLC. Which would have been less? If it was the ERC, it MAY have been a better option to find a lender who does not charge a HLC.

irishspur

Cheers for that, it seems a bit underhand.

dunstonh

Cheers for that, it seems a bit underhand.

Underhand is if the charge was hidden or charged after the event. This isnt the case with HLC as it is a published charge you are made aware of before you agree to take the mortgage. There are plenty of lenders out there who dont charge it. With hindsight, you may have been better with one of them.

What made RBS so attractive that you went with their deal and not a lender that didnt charge it?

dwight-van-man

This might be utter nonsense so apologies in advance, but I used to work with RBS (a fair while ago admittedly) as a mortgage adviser and part of our sales pitch was that if you moved house within three years, you could claim back a portion of the HLC or MIG as it was. To the best of my knowledge, no-one ever actually did it so I couldn't say whether it was actually true or just something we used as a sweetener to hit targets but might be worth a try.....

irishspur

at the time we were offered the best deal for us, northern rock were a lower rate but had a bigger hlc

Leon_W

But Northern Rock don't charge HLCs ?????

irishspur

Leon_W wrote: »

But Northern Rock don't charge HLCs ?????

Sorry ,it wasn't them, NAtWest. Northern Rock wouldn't give us the amount required

homer_j_3

natwest and rbs are same group of companies

MarkyMarkD

HLCs are related to an individual mortgage, so it's quite normal for lenders to charge them again if you take out ANOTHER mortgage >90%.

But it's very unusual for this to happen because most people don't buy a house and then change their mind 5 months later.

Obviously it's legal - nearly everything is legal despite the attitude of some people on this site - as it was a free choice of yours to take the mortgage with the HLC rather than other ones without HLCs, or no mortgage at all.

HLCs are not generally refundable at all. The pricing of them is based on the expected redemption profile of the mortgages and everyone will pay slightly less than they otherwise would, due to people who redeem after a few months.

UK007BullDog

Even though RBS and NatWest are the same group of companies, they both have different rates and terms of conditions.