HSBC mortgages highlights fees issue

Date:Thursday 5th August 2010
Author: Susanna Kavka

Early redemption fees are making many home finance deals more expensive than they initially appear, according to a HSBC mortgages representative.

Martijn van der Heijden, head of mortgages at the company, accepted that most consumers start out by wanting to hold onto a loan until its initial rate ends, but this does not always happen.

He noted that people may need to duck out of their mortgage deal for one reason or another and pay whatever fees they signed up for.

Mr van der Heijden made his remarks after HSBC mortgages research revealed that there can be a difference of up to £6,090 between the cheapest and most expensive lenders, if people choose to redeem their contract 12 months early.

"HSBC has a long standing reputation for providing mortgages with transparent pricing that offer real long-term value with no hidden fees," he added.

This week, the firm unveiled its lowest ever rate five-year fixed-rate mortgage at 3.95 per cent.