Tips to Help You Save on Your Fuel Costs
During the winter months fuel bills tend to soar and are the second highest expense encountered by homeowners after their monthly mortgage payment. Read more
Tags: electricity costs, gas costs, winter, length of time, exit, mind
Bank to waive mortgage fees until end of September
September 28, 2007 by admin
Filed under News, News-Mortgages
One of the UK’s leading high street banks, HSBC, has announced earlier this month that it plans to waiver all mortgage fees for new and existing customers until the end of September.
The bank has already agreed that it will be axing mortgage exit fees, as have many other lenders, following a call for action from UK regulators and campaigners who stated that mortgage exit fees has rocketed for no apparent reason over the past few years.
According to reports the mortgages offered by HSBC will be totally fee free for existing and new customers until the end of September. However, the bank is offering its best rates as mortgage specials, and for these customers will still need to pay arrangement fees. According to some officials, the bank has set rates higher than many of its competitors, and this, along with the arrangement fee charged on the best deals, could mean that customers could still be better off going elsewhere despite the fee free offer.
One official from HSBC 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.’
The bank does offer a range of mortgages, but consumers are urged to do some research and compare rates from other lenders, as even if they have to pay a fee with another lender it could still work out cheaper due to the lower rates of interest offered.
Tom Smith
28th September 2007
Excess exit fees scrapped after consumer pressure
July 24, 2007 by admin
Filed under News, News-Mortgages
Excess exit fees for mortgage holders looking to switch, which had previously been levied by mortgage providers, are to be paid back, after consumer pressure and a ruling by the Financial Standards Authority (FSA).
Providers had presided over big increases in exit fees – with some doubling them in the last three years – for little extra cost incurred. This was seen as unfair by consumer groups.
The FSA, agreeing with customer complaints, had demanded that providers either justify the extra charges or return the difference, and set yesterday as a deadline.
Providers, after strongly resisting the ruling initially, have now decided to pay up on deadline day. Millions of customers will now get their money back.
Melanie Bien, at broker Savills Private Finance, told the Times that “Anyone who has remortgaged in the past few years… will be able to make a claim, depending on their lender’s stance.
“Lenders are concerned about the scale of claims they are likely to see regarding exit fees, which may be why borrowers will have to make a claim themselves, rather than wait to be contacted by their former lender”, she added.
Consumer groups will now look to their next battle, which will concern what are perceived as “excessive” overdraft charges from banks. A judgement from the Office of Fair Trading (OFT) is expected later this year.
