Shopping around is still the best way to get a good mortgage rate according to HSBC.
Despite new research that shows going to a bank or building society directly can be as good as using a broker Britain's biggest bank is still urging people to check all options first.
Martijn van der Heidjen, head of mortgages at HSBC said: "No one can argue that shopping around isn't the most sensible approach to take when looking for a new mortgage. Going to a broker can be a useful part of this process, but as this research clearly shows it definitely shouldn't be seen as the route to guaranteeing you the best deal. Borrowers need to check newspaper best buy tables, comparison sites and lenders directly to ensure they are getting a great deal."
Using datas from Moneyfacts, HSBC revealed that direct lenders now offer deals equivilent to brokers. The study looked at 96 mortgage deals which held the position of lowest rate in the market at some point over the last two years.
But the findings also showed that the number of deals on offer has risen by 66 per cent this year, highlighting the need to make a careful selection.
HSBC also discovered that more than half of the deals available still require a downpayment of at least 25 per cent of the value of the home.
According to statistics from the Council of Mortgage Lenders (CML), the average first-time buyer is now putting down a deposit of £35,000 to buy a home.
And the proportion requiring only a 10 per cent deposit still stands at just 8 per cent of all the mortgages currently on offer.
However, despite the lack of new deals Moneyfacts say the rates available on the current deals are getting better. Michelle Slade said: "There has been no real movement in the overall number of new mortgages available on the market in the past month, but those that are available continue to be more competitive.
"Many of the best deals are now available for a 25% deposit, having previously only been available for those with a 40% deposit."
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