Mortgage fees from HSBC to be halted until end of September
August 28, 2007
HSBC is trying a new tactic to try and tempt consumers to take out a mortgage with them. One of the leading UK High Street banks, the HSBC has recently announced that it will be offering fee free mortgages until the end of September, enabling those looking to take out a mortgage to do so without having to pay any fees.
However, although there will be fee free mortgages available from the bank, those wishing to opt for the best rates with HSBC, which are known as mortgage specials, will still have to fork out for the arrangement fee.
According to one HSBC spokesperson this puts the banks a step ahead of the competition. He stated: ‘With some lenders recently bowing to pressure to scrap their exit fees, HSBC has decided to stay one step ahead by removing all fees on its standard mortgage range until the end of September. This will enhance HSBC’s reputation for providing transparently priced mortgages which offer real long-term value. Sadly some lenders will simply look to rename their exit charge or bump up fees elsewhere, however HSBC customers can rest assured, the rate they see is all they will pay.’
However, experts are not of the same opinion. Many feel that the interest rates charged on HSBC mortgages are higher than average, and that even with the fee free offer from HSBC many consumers – particularly those that may have to pay arrangement fees for a lower rate mortgage from the bank – could actually find themselves financially better off by looking elsewhere for their mortgage rather than simply assuming that they will save money by not having to pay fees.
The announcement comes shortly after many mortgage lenders agreed to eliminate mortgage exit fees following pressure from financial regulators and campaigners over the level by which these fees had risen over the space of a few years and for no apparent reason.
Alan Wright
28th August 2007
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