The two cheapest mortgage providers in 2006 were banks, Defaqto finds.
Banks cheapest for mortgages
Tuesday, 02 Jan 2007 15:51
The two cheapest mortgage providers are both banks, new figures show.
Data released today by financial analysts Defaqto shows that in 2006 HSBC and Intelligent Finance were the cheapest mortgage providers for existing borrowers.
However, while Banks took the top two places in the chart, building societies fill the next three slots - with Skipton, Nationwide, and Britannia the next cheapest mortgage providers.
Additionally, while banks proved cheapest, Defaqto's figures also see them as the most expensive - with Royal Bank of Scotland and Bank of Scotland the most expensive of the 30 largest mortgage providers in the UK, as defined by the Council of Mortgage Lenders.
Specialist providers and privilege or loyalty rates were not included in the survey.
"Despite two Bank of England base rate increases last year, on average they [standard mortgage rates] did not change significantly from 2005 so it's not surprising that it cost virtually the same to service a standard variable rate mortgage in 2006 as it did in 2005," said David Black, head of banking at Defaqto.
"While it is recognised that standard variable rate mortgages are only one type of mortgage, they can represent an important benchmark in competitiveness.
"This demonstrates why borrowers must take the time to check that they have the most appropriate mortgage."
Top ten mortgage lenders for 2006
Based on a £50,000 loan for existing borrowers at the standard variable rate or equivalent
1 - HSBC
2 - Intelligent Finance
3 - Skipton
4 - Nationwide
5 - Britannia
6 - Standard Life Bank
7 - The One Account
8 - Direct Line
9 - Yorkshire
10 - Principality