HSBC fee free mortgage

Julia Harris, Mortgage Expert at Moneyfacts.co.uk, comments: “With so much bad publicity surrounding rising arrangement fees and unfair exit charges and with many borrowers struggling to find the upfront costs needed to move home and find a new mortgage deal, its no wonder lenders are launching no fee mortgage deals. But, as with every thing you don’t get something for nothing, and while the fees may be zero, the lender will make up the costs by way of higher rates.

“HSBC has relaunched its fee free deals this week, but has failed to mention that the rates on most of these deals have also risen over the last week, so it’s robbing Peter to pay Paul.

“The fee free deals offered by HSBC are far from market leading and the same features can be found on more competitive deals.

“Also if you compare the free fee and two year fixed rate (with fee) deals which HSBC offer, the deal including the fee comes out trumps on a mortgage of £130K or £200K, and is only £14 more expensive than the fee free deal at £110K.

“HSBC doesn’t normally charge exit fees or higher lending charges, and on the fee deal mentioned above the valuation fee is free. In reality the only freebies you are actually receiving are the booking fee, completion fee and conduct fees.

“Fee free deals can offer the helping hand many first time buyers need, but they must do their homework to calculate the cost of the deal. Remember, most lenders will allow you to add the fees to your loan, which with a competitive interest rate can work out a better deal.”