Under what condition does remortgage require a new higher lending charge due to LTV?

Under what condition does remortgage require a new higher lending charge due to LTV?

• A. LTV more than 75%
• B. LTV less than 50%
• C. LTV exactly 75%
• D. LTV cannot be determined

Answer: (A)

When a remortgage involves a new loan that is large relative to the property's value, lenders may apply a Higher Lending Charge to reflect the extra risk. The trigger is when the loan-to-value (LTV) would be above 75%. If the LTV is 75% or below, the Higher Lending Charge is not typically charged. So, the condition that requires a new higher lending charge due to LTV is LTV more than 75%.

When a remortgage involves a new loan that is large relative to the property's value, lenders may apply a Higher Lending Charge to reflect the extra risk. The trigger is when the loan-to-value (LTV) would be above 75%. If the LTV is 75% or below, the Higher Lending Charge is not typically charged. So, the condition that requires a new higher lending charge due to LTV is LTV more than 75%.