Can you carry a higher lending charge to a new mortgage?

Can you carry a higher lending charge to a new mortgage?

• A. Yes, higher lending charges can be carried to a new mortgage.
• B. No, higher lending charges are specific to a particular mortgage and cannot be carried over.
• C. Only if the loan-to-value stays under 75%.
• D. Remortgage would require no new charge provided the lender agrees.

Answer: (B)

Higher lending charge is a fee tied to the specific mortgage deal and the risk profile of that particular loan. It forms part of the contract you enter into when you take out that loan, and it isn’t an amount that can be carried over or ported to a new mortgage. When you remortgage, you’re entering a new agreement with a lender (or a new product with the same lender), which means pricing and any applicable fees are determined again for the new deal. The old higher lending charge simply doesn’t transfer to the new arrangement. So, even if you’d prefer to keep the same lender or hope to avoid extra costs, the charge isn’t portable; you’d face a fresh assessment and any new fees that apply to the new mortgage.

Higher lending charge is a fee tied to the specific mortgage deal and the risk profile of that particular loan. It forms part of the contract you enter into when you take out that loan, and it isn’t an amount that can be carried over or ported to a new mortgage. When you remortgage, you’re entering a new agreement with a lender (or a new product with the same lender), which means pricing and any applicable fees are determined again for the new deal. The old higher lending charge simply doesn’t transfer to the new arrangement.

So, even if you’d prefer to keep the same lender or hope to avoid extra costs, the charge isn’t portable; you’d face a fresh assessment and any new fees that apply to the new mortgage.