HIGHER LENDING CHARGES – TFC SAYS BORROWERS
SHOULD HAVE A CHOICE
TFC has confirmed that these charges are definitely being shunned by some mortgage advisors, as they favour products which do not force borrowers to pay HLC’s as an additional separate cost.
Simon Snape, head of products at TFC Homeloans, says: “There is no doubt that some advisors are actively avoiding mortgage products which force borrowers to pay for HLC’s as an additional cost. There is now a far wider choice of competitive HLC free products available and advisors are selecting products which don’t require their clients to use cash which they would prefer to put towards a deposit or moving costs. At the same time, many borrowers are happy to pay the one off charge in order that they can get the lowest interest rate possible”
Amongst those lenders which have recently launched HLC free products is Mortgages plc. Peter Beaumont, Sales & Marketing Director at Mortgages plc said: “At Mortgages plc our policy has always been to provide both brokers and borrowers with as much choice as possible. Few Borrowers understand higher lending charges and selling products which do not carry this as a separate cost enables brokers to remove a sales barrier. Lenders have to charge more to cover the additional risk of higher LTV loans, but this cost can be either passed on within the mortgage rate or as a separate charge. We’re happy to let borrowers choose which option suits them best.”
