TFC Homeloans believes borrowers should have the choice as to whether they pay higher lending charges or not when taking out a mortgage.
TFC says these charges are being shunned by some brokers as they favour products which do not force borrowers to pay HLCs as an additional cost.
TFC Homeloans head of products Simon Snape says: “There is no doubt some advisors are actively avoiding mortgage products which force borrowers to pay for HLCs as an additional cost. There is now a far wider choice of competitive HLC free products available and advisors are selecting products which don’t require their clients to use cash which they would prefer to put towards a deposit or moving costs. At the same time, many borrowers are happy to pay the one off charge in order that they can get the lowest interest rate possible.”