HSBC removes mortgage fees in promotion

In a reflection of the UK’s increasingly competitive mortgage market, high street bank HSBC has announced that it will axe all mortgage fees for two months, effective immediately.

The bank said that it was making the move as a reaction to the ongoing Financial Standards Authority (FSA) investigation into the charges.

Consumer groups have complained to the FSA that charges such as exit fees have been ramped up in recent years , while not costing providers any extra money over that period.

Head of mortgages at the bank Rob Chesters said: “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.”

Some advisers say, however, that the promotion might not be all that it seems. “With HSBC’s rates higher than many rivals, homeowners could be better off choosing to pay fees and head elsewhere”, This Is Money counsels.

The FSA is due to report its findings later in the year.

Tags: end, Financial Standards Authority, hsbc, year, bank rob chesters, United Kingdom, consumer groups