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Higher Lending Charge

Lillys_mum
Lillys_mum Posts: 581 Forumite
in Mortgages & endowments
I am taking a 97% mortgage with the Halifax

purchase price £95000 deposit £2850

Will this be subject to a higher lending charge and if it is can I add this on to my mortgage ( I know it will be subject to interest and will cost more )

Also can I add the arrangement fees onto mortgage


Thanks to everyone

Comments

  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Have you been given an illustration (KFI) by Halifax or your broker?

    It should state on their what fees are being charged.

    At 97% I would think Halifax will be charging you an HLC which can either be paid up front or added to the mortgage -along with the arrangement fees

    What interest rate are they charging and what are the fees? Have you looked at deals that do not charge an HLC?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Lillys_mum
    Lillys_mum Posts: 581 Forumite
    We have only a mortgage promise.

    we are going to see out advisor on Friday to sort out the mortgage. We are looking at the 10yr fixed rate deal which they are ofering at the moment which had a rate of 6.29% and an arrangement fee of £499 (all information sourced from halifax website) no indication of HLC but I presumed because we are borrowing 97% we would encounter one.

    The nationwide would not offer us a mortgage but they also had higher rates.
  • dunstonh
    dunstonh Posts: 121,109 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Are you seeing a whole of market mortgage adviser or are you going straight to lender to see a bank clerk?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Lillys_mum
    Lillys_mum Posts: 581 Forumite
    We have seen a whole of market broker.

    He suggested the Halifax.- it is a shared ownership property
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    What percentage are you buying?

    I don't know anything about your circumstances, but I'm sure there may be other options that will not charge an HLC
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Lillys_mum
    Lillys_mum Posts: 581 Forumite
    We are buying a 50% share.

    We came out as a 'b' score on the Halifax system
  • green1970
    green1970 Posts: 744 Forumite
    There's not usually a higher lending charge if you're only purchasing 50% of the property, even if you're borrowing 100% of that share, Lilly's mum.
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  • Lillys_mum
    Lillys_mum Posts: 581 Forumite
    green1970 wrote: »
    There's not usually a higher lending charge if you're only purchasing 50% of the property, even if you're borrowing 100% of that share, Lilly's mum.

    That would be nice - I will just have to wait until Friday to see our broker and ask him.
    Thanks
  • Lillys_mum
    Lillys_mum Posts: 581 Forumite
    Have just spoken to the Halifax and they have confirmed no HLC in this situation.

    Thanks for all your advice everyone.
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