The HSBC has just completed a market survey and discovered a massive difference among lenders for early redemption charges. UK’s biggest bank discovered that early redemption charges vary by as much as 6,000 pounds between the most expensive and the least expensive. The 6,000 pound difference was discovered by using the following as the model; a 150,000 pound mortgage paid back 12 months early.

Experts across the UK are advising borrowers to seek a low fixed rate mortgage or remortgage based on the low interest rates available. The interest rates are going to remain at record lows for several months, based on many economists opinions.

Based on the low interest rates available, more and more banks are seeing homeowners remortgaging and paying off their loans early. Unfortunately, during times of radical swings in behavior of large amounts of people, banks and other lending institutions see opportunities to charge more for basic services. Making sure that a specific repayment early fee is written within the original loan agreement could be a way to avoid additional fees.

HSBC found in some cases, during the survey, that it would be, "cheaper to simply continue paying back their mortgage than attempt to pay it back early."

Martijn van der Heijden, HSBC head of mortgages said: "It is essential that borrowers check behind headline rates for high exit and redemption fees."

This type of discovery could encourage residents of the UK to consider renting instead of buying to avoid any early redemption costs.

Although, with the Bank of England keeping interest rates unchanged, home ownership is still more attractive than ever before.