higher lending load (HLC) is a burden of mortgage lenders in the UK when the loan-to-value ratio of a mortgage is higher than they are prepared to accept at standard rates.

Typically, HLCs are applied to loans in excess of 90% of the property value, although until the 1990s, the limit was usually 75%.

A number of mortgage lenders do not charge HLCs. They avoid this by either restricting the availability of their mortgages to lower loan-to-value ratios, or charging higher rates on loans with a higher loan-to-value . Differential pricing of this nature is also referred to as “pricing for risk”.

See also

  • UK mortgage terminology
  • Mortgage loan
  • remortgage
  • Subprime mortgage lending