HSBC, one of the biggest highest street banks in the UK, is axing all fees on mortgages until the end of September. This late summer promotion will apply to all mortgages – for both new and existing customers.

It was only last week that HSBC announced that it was removing all exit fees in response to an investigation by City watchdog, the Financial Services Authority.

In spite of the announcement HSBC borrowers looking for their best rates will still have to pay arrangement fees to make sure they get the so-called “Mortgage Specials”. Also, HSBC’s rates are higher than many other lenders’, so homeowners might be better off by choosing to go elsewhere and pay the fees.

HSBC said it was attempting to give customers a better idea of the money involved when they were comparing deals, so until October it was not going to charge booking, valuation, completion, exit, servicing and conduct fees, or higher lending charges.

Head of mortgages at HSBC is Rob Chesters, who said: 'With some lenders recently bowing to pressure to scrap their exit fees, HSBC has decided to stay one step ahead by removing all fees on its standard mortgage range until the end of September. This will enhance HSBC's reputation for providing transparently priced mortgages which offer real long-term value. Sadly some lenders will simply look to rename their exit charge or bump up fees elsewhere, however HSBC customers can rest assured, the rate they see is all they will pay.'

HSBC is currently offering a two-year fixed rate of 6.69% and a tracker at Bank of England base rate plus 0.79%, therefore currently 6.54%. HSBC also has three, five and ten-year fixed deals at 6.79%, 6.49% and 6.39% respectively.

For first-time buyers Nationwide has a cheaper two-year fixed deal at 6.38% without fees, or a two-year deal at 5.98% with a £499 fee. Anyone remortgaging could only get 6.64% and 6.24% in comparison.

ING Direct has a flexible standard variable rate mortgage with no arrangement, valuation or exit fees and a rate currently at 5.99% which is guaranteed not to go higher than 0.9% above base rate.