Most banks don’t offer best value mortgages
November 20, 2007
According to a recent report most banks in the UK fail to deliver on best buy mortgages, with building societies being identified as offer the majority of the best deals on home loans.
Research suggests that the vast majority of the best value mortgages on the market are available from building societies, and as a result of this consumers are being warned to think twice before approaching banks for a good value mortgage.
Some experts state that based on the research consumers have a better chance of getting an affordable mortgage from a building society rather than from one of the UK’s big banks.
The research showed that around 70% of the best mortgage deals come from building societies, and most of the big name banks were failing to offer best buy deals on home loans and mortgages. The research was carried out by Moneyfacts, and involved looking at 250 variable, fixed, and discounted rate mortgages. The research indicated that only 30% of the best mortgages were offered by banks, and that the top ten mortgage lenders offered only 11% of the best mortgages.
One official involved in the study stated: ‘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, parent of Halifax, did not appear at all.
‘For the majority of borrowers, the deals from building societies and smaller lenders are winning hands down. Making one of your biggest financial decisions should not be based upon brand or the perceived convenience of your existing lender. It should be about finding the most competitive and suitable deal. Take the time to shop around, and don’t assume that bigger means better. In fact when choosing a mortgage quite the opposite is true, both with building societies dominating the field and the lack of large lenders appearing in the top 250 products.’
Alan Wright
20th November 2007
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