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HSBC fee free mortgage - robbing Peter to pay Paul!

HSBC fee free mortgage - robbing Peter to pay Paul!

Category: Mortgages

Updated: 31/10/2008
First Published: 13/09/2007

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

HSBC has re-launched its fee free mortgage deals, but have also increased the rates on most of these deals - a bit like robbing Peter to pay Paul! The fee free mortgage deals offered by HSBC are far from market leading and the same features can be found on more competitive mortgage deals.

With so much bad publicity surrounding rising arrangement fees and unfair exit charges, its no wonder lenders are keen to promote "no fee" mortgage deals. But, you don't get something for nothing, so while the fees may be zero, the lender makes up the costs through higher interest rates.

HSBC doesn't normally charge exit fees or higher lending charges, and the fee free deal does also include a free valuation. But, in reality the only freebies you are actually receiving are the booking fee, completion fee and conduct fees.

Fee free deals can be a good deal for many first time buyers, but you must do your homework and look at the overall cost or true cost of the mortgage - you can do this with our mortgage best buys.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.