HSBC has scrapped valuation fees for all its mortgage customers in a move that will save borrowers hundreds of pounds.
The change, which comes into effect from today (Monday, 11 September), will lead to 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.
Tracie Pearce, HSBC UK’s head of retail products, said: “We are working to improve the home-buying process and this is a significant move, making it simpler for both remortgagors and those purchasing a home.
“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 cashflow, giving them a bit more spending power when they move in.”
Andrew Montlake, director at London-based Coreco Group, said the move was partly because lenders having gone as low as they can on rate competition.
“Rates have become really low and now it becomes all about the fees and additional benefits they can use to differentiate themselves,” he said.
“I think we are seeing quite a move generally to come down on some of the valuation fees. It has happened in the remortgage space for a while, and some have been doing it on the purchase for a while, for example Santander, and others are starting to follow suit.
“It is really good for consumers, who can take advantage of it and get their own valuation done for their purchases, while the bank’s is paid for by the bank.”
simon.allin@ft.com
