12 Sep 2017

Valuation fees scrapped for HSBC mortgage customers

HSBC has saved borrowers hundreds of pounds by ditching their valuation fees on mortgages.

Starting yesterday (Monday 11th September), customers will see savings of £173 for property values between £150,001 and £200,000, £227 for property values between £250,001 and £300,000, and £281 for property values between £400,001 and £500,000. This saving is welcomed by customers.

HSBC’s head of retail products, Tracie Pearce said this about the move:

“We are working to improve the home-buying process and this is a significant move, making it simpler for both re-mortgagers and those purchasing a home.

She continued to say:

“Buying a house is a major financial investment, particularly for first-time buyers, so by removing valuation fees and potentially saving them hundreds of pounds we are helping them to keep initial costs down and improving their cash flow, giving them a bit more spending power when they move in.”

According to Andrew Montlake, director of Coreco Group – a London based mortgage broker, the move by HSBC was partially down to lenders not being able to go any lower on rates due to competition. He notes that:

“Rates have become really low and now it becomes all about the fees and additional benefits they can use to differentiate themselves. I think we are seeing quite a move generally to come down on some of the valuation fees. It has happened in the re-mortgage space for a while, and some have been doing it on the purchase for a while.”

He added:

“It is really good for consumers, who can take advantage of it and get their own valuation done for their purchases”.

By Kathryn Pegler