Mortgage perks are ‘few and far between’

With banks tightening their lending criteria due to the current turmoil in the financial markets, borrowers should not expect to find many extra perks in their mortgage deals, according to Moneyfacts. Read more

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Homeowners prepare to ‘hide’ bedroom

Now that the advent of home information packs (Hips) has become a reality, many homeowners in Britain are preparing to exploit a loophole in the scheme.

Because Hips only applies to houses with three bedrooms or more, many homeowners plan to call their third bedroom an office or something else in order to get out of having to buy a pack, Abbey has discovered.

A full 8.5 million people with houses that have three or more bedrooms admitted that they would utilise this loophole.

Nici Audhlam-Gardiner, head of mortgages at Abbey, said: “While Hips might seem a hassle we think it would pay in the long run to play it a straight rather than going through this loophole.

“By remarketing your home as a two-bedroom house with a study, you’ll become invisible to thousands of potential buyers that are searching online.”

Many of those looking to buy may see the price advertised for a supposed two-bedroom house and think it overpriced, said Ms Audhlam-Gardiner.

Hips became compulsory for houses with three bedrooms at the beginning of this month.

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HSBC launches zero-fee mortgage policy

Those people averse to paying a fee on their mortgage may be enthused by HSBC’s new offering.

Available for a limited period until April 30th, every new HSBC mortgage taken up with the group will be fee-free.

During the peak spring homebuying season, people looking to invest in bricks and mortar can take up fixed-rate, tracker and discount HSBC mortgages with the usual booking fee of £499 waived.

Standard valuation, completion fees and exit fees will also not be applicable to HSBC mortgages.

Rob Chesters, head of mortgages at HSBC, said there had been a “proliferation” of high arrangement fees across the market “which can wipe out the savings made by re-mortgaging, particularly if the fee is wrapped up into the mortgage loan”.

He added: “However, it’s not just about upfront costs – further borrowing fees, admin fees and duplicate statement fees can all add up.

“Exit fees, in particular, are difficult for borrowers to compare – but while other lenders have been putting their exit fees up, HSBC’s has remained exactly the same – zero.”

HSBC mortgages also possess no higher lending charges, with flexible payments facilities also featuring.

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