Which statement is true about higher lending charges when moving to a new mortgage?

Which statement is true about higher lending charges when moving to a new mortgage?

• A. Higher lending charges can always be carried over to the new mortgage.
• B. Higher lending charges are specific to a particular mortgage and cannot be carried over.
• C. Higher lending charges are refunded automatically on remortgage.
• D. Higher lending charges do not apply to remortgages.

Answer: (B)

Higher lending charges are tied to the specific mortgage product you took out with a lender. When you remortgage, you’re entering a new loan agreement (potentially with a different lender or a different product), so the charge from the old mortgage doesn’t automatically transfer. You’ll face whichever charges apply to the new loan, if any. So the statement that higher lending charges are specific to a particular mortgage and cannot be carried over is the correct one. They aren’t automatically refunded on remortgage, and remortgaging doesn’t mean HLCs don’t apply or aren’t relevant—the new loan may have its own HLC.

Higher lending charges are tied to the specific mortgage product you took out with a lender. When you remortgage, you’re entering a new loan agreement (potentially with a different lender or a different product), so the charge from the old mortgage doesn’t automatically transfer. You’ll face whichever charges apply to the new loan, if any.

So the statement that higher lending charges are specific to a particular mortgage and cannot be carried over is the correct one. They aren’t automatically refunded on remortgage, and remortgaging doesn’t mean HLCs don’t apply or aren’t relevant—the new loan may have its own HLC.