What mortgage % needed for no HLC?

saverstacey

Hi, we have a mortgage offer from Harbour Homeloans (GEM) at 95% on a purchase price of £177,000. Fixed rate of 6.64% for 3 years (near prime plus).

We have decided we want to put down a bigger deposit rather than keep money back to do up the house. At present there is a higher lending charge of £2,920.50 with an arrangement fee of £899 for the product added to the loan.

So what we need urgently to know (and cannot get hold of either lender or broker) is what percentage would we need to put down as deposit for there to be no HLC? 10%? 15%? 20%? And would the rate offered be any better with a lower loan to value?

Does anyone have experience with this lender and knows the answer?

Thanks very much in advance for any help.

webmister22

Hi SaverStacey

Harbor homeloans are a broker so it will depend on who's product they've selected for you. Generally to avoid the HLC you need a deposit of 10 - 15% of the valuation of the property.

I hope this helps,

Webmister22

saverstacey

Thanks very much for the reply.

The actual lender is GEM- general electric money??? I think????

We were looking at puttiing down between 10% and 15%. Ideally I think it would be about 13%, but if 15% was the cut off to avoid the HLC then we could probably stretch.

Anyone else have experience with this lender?

saverstacey

just bumping