According to The Guardian, the lender said that customers would not incur a charge when they repaid their mortgage or switched to another provider. However, this only applies to new mortgages taken out. Existing mortgage customers will have to pay the agreed fee confirmed on their latest mortgage contract.
The Guardian also cited a spokeswoman for the group as saying that the move brought HBOS in line with the best practice outlined by the Financial Services Authority (FSA).
This move comes as the UK watchdog seeks to launch an investigation into ‘unfair mortgage exit fees,’ after several lenders increased the fees as a way of making easy money, This is Money reported. The Times also reported the FSA as saying that it would further investigate lenders which have re-branded their exit fees.
Other lenders such as Royal Bank of Scotland, Standard Life Bank and Cheltenham & Gloucester have also reportedly scrapped their mortgage exit fees.
