HSBC has published an analysis of how much early redemption charges (ERC) can vary by.
HSBC checked to see how expensive five year fixed rate mortgages are to get out of. It found that in some cases, if borrowers are closer than 14 months away from their fixed rate ending, it would be cheaper to simply continue paying back their mortgage than attempt to redeem it early.
It looked at July’s best buy fixed rate mortgages and found a huge difference in early redemption charges. Based on a typical £150,000 repayment mortgage being redeemed 12 months early, this can be as high as £6090 between the cheapest and most costly lenders.
Martijn van der Heijden, HSBC’s head of mortgages, said: “HSBC has a long standing reputation for providing mortgages with transparent pricing that offer real long-term value with no hidden fees.