Glossary

Higher lending charge
A fee paid by the borrower to the lender at the start of the loan period if the amount borrowed is a high percentage of the value of the property. See Loan to Value. The lender uses the fee to insure itself against the borrower defaulting on the mortgage and in case the value of the property on repossession is less than the amount of loan outstanding. The borrower receives no benefit and no protection from this policy. If the lender makes a claim on the policy, the insurance company can then pursue the borrower for repayment of the amount.

Holiday home
A property which is used only for holidays or weekends and not as a main residence. Lenders criteria are more strict than for a main residence and usually require a larger deposit.

Home buyers report
A type of survey which contains more information than a mortgage valuation but less than a full structural survey. The surveyor may also carry out a mortgage valuation for the lender in place of a simple valuation report so you need to check that the valuer is acceptable to the lender. A home buyer's survey gives the borrower more useful information than a simple valuation report.It is important to get the right type of survey carried out when buying a property.See also: Full Structural Survey and Valuation Report.