Higher Lending Charge - Homebuyers Report
Higher Lending Charge
This is a premium charged by Lenders in order to indemnify themselves, and NOT the borrower, against any financial shortfall they may incur in the event of repossessing a property which must then be sold at a loss. It is applicable if the amount required is higher than a certain percentage of the property value, usually 75% LTV; often the Lender will pay the cost of this insurance themselves between 75% and 90% LTV. The charge may either be added to the loan or deducted from the advance on completion.
Also known as: Additional Security Fee; Indemnity; Mortgage Indemnity Guarantee (MIG).
High Street Lenders
Providers of mortgage products who can be broadly split into two groups - the building societies and the banks. Banks are profit-making businesses that return a portion of their profits to shareholders in the way of dividends. Building societies on the other hand, are mutually owned organisations, which exist not for profit but for the benefit of the members. They claim that this allows them to return profits to their customers in the form of cheaper products.
HM Land Registry
Government organisation that keeps records of properties in England and Wales. Transfer of ownership must be registered with the HM Land Registry.
Homebuy Loan
A homebuy loan is one which is used to buy a property under a homebuy scheme. Homebuy scheme Homebuy schemes are often run by housing associations looking to sell of their property and are a type of initiative aimed at encouraging home ownership amongst those people who may not ordinarily have the means to purchase their own home. Generally, you will have to obtain a mortgage for 75% of the property value, while the RSL (Registered Social Landlord) will front the rest of the money. The RSL will retain there share and if you sell the property they will keep the same proportion of the sale proceeds, including any gains that are made.
Homebuyers Report
This type of survey is prepared for you and gives details of the basic state of repair of the property. It almost always provides a basic valuation as well. A surveyor will only inspect those areas of the property that are reasonably accessible or visible. They will then write a report on the property.