With 21.2 per cent of the mortgage market, HBOS’s decision will be seen as key in the move against exit fees.
An HBOS spokeswoman says: “Existing customers will continue to pay the mortgage exit fee quoted on their most recent mortgage agreement. For new customers the mortgage exit administration will not form part of the mortgage offer with effect from July 31.”
The lender confirmed that this would be the same across all of its brands.
HBOS now joins Northern Rock, Standard Life Bank, Bristol and West and Cheltenham and Gloucester in axing exit fees.
The Mortgage Practitioner sole practitioner Danny Lovey says: “This is game, set and match now regarding exit fees. The pressure is now on the other lenders like Abbey and Alliance and Leicester otherwise they will remain isolated.”