HSBC’s rate matcher mortgage now charges arrangement fees of up to £9,999.
This deal was supposed to ‘match’ a fixed rate that ends soon but HSBC apply such tight criteria that it is sometimes too difficult for some borrowers to get onto the deal. The idea was to closely match the fixed interest rate on the mortgage so that a borrowers payments did not go up too much. However, with fees as high as this you really need to calculate the ‘added cost’ of adding the fee onto the mortgage if it is unaffordable upfront. Any fees added to a mortgage will have interest charged for the life of the mortgage loan.
This latest news will mean that most mortgage borrowers will be worse off as the fee is so high. As always, seek advice from a mortgage broker who can compare mortgage deals on your behalf.