Building societies have come out above banks for providing the most competitive and customer-friendly mortgage offers, research from Moneyfacts.co.uk has found.
The best mortgage deals are to be found not by going with the catchiest advertising campaign, or the best-known brand name, but by shopping around and making an informed decision, says the comparison website, which has found that 70 per cent of the best 250 current mortgage deals are offered by building societies.
The site took into account the entire mortgage market, including variable, fixed and discounted rates for various terms, and the results show that the Council of Mortgage Lenders’ top ten providers only account for 11 per cent of the top 250 deals on the market at the moment.
Julia Harris, mortgage expert at Moneyfacts.co.uk said: “It is shocking to see that so few of the top priced mortgage deals are offered by the largest mortgage lenders. The Royal Bank of Scotland Group under the brands of First Active and Direct Line lead the way offering a meagre six out of the top 250 deals, and very disappointingly the largest lender the HBOS group, did not appear at all.”
Ms Harris expressed her dismay over the fact that public opinion is often dominated by what they see on the high street, despite the vast amount of information easily available.
“While some deals offered by these providers may offer the best solution to an individual customer’s needs” she said, “the findings show that, for the majority of borrowers, the deals from building societies and smaller lenders are winning hands down.”
Moneyfacts recommends that when making one of them most important financial decisions of their lives, mortgage-seekers should concentrate on finding the most competitive and suitable offer and should not assume that “bigger means better.”
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