HSBC responds to FSA mortgage exit fees announcement

Responding to today’s announcement from the FSA on mortgage exit administration fee increases, Rob Chesters, head of mortgages at HSBC said:

“HSBC has a reputation for providing mortgages that are transparently priced and offer real long-term value. This is why we have one of the lowest SVRs and why we choose not to charge our mortgage customers exit fees.

“We believe that borrowers should have the freedom of choice in their mortgage provider and yet the majority of top ten lenders are charging their customers between £175 and £295 to release a mortgage.

“High exit fees are difficult for borrowers to compare as they are not fixed at the start of their mortgage. It is vital that borrowers check behind headline rates for hidden fees, charges and extended tie-ins. It is essential to understand the full costs associated with a new mortgage before signing on the dotted line.”