HSBC scraps mortgage fees for two months

High street bank HSBC has announced that it will remove the fees on its mortgage products for two months in a bid to simplify the lending process.

The promotional move will last until the end of September and follows on from the bank's previous campaign to dispose of the exit fees made compulsory by the Financial Services Authority last week.

As part of the scheme, customers who are applying for a mortgage with the bank will not be charged a booking fee, standard valuation fee, exit fee, higher lending charge, mortgage account servicing and conduct fees or the £30 completion fee.

HSBC's head of mortgages Rob Chesters said: "With some lenders recently bowing to pressure to scrap their exit fees, HSBC has decided to stay one step ahead.

"Our new mortgage offers will fill the void of clear and transparent mortgage deals, the market has for too long concentrated on increasing dubious fees to shore up headline rates".

He added that this move was a bold step compared to a number of other lenders who have scrapped their exit fees but will now "look to rename their exit charge or bump up fees elsewhere".

Many banks have been criticised for this practice, with the Guardian reporting that a number of banks have ditched exit fees but increased charges for other administration.

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