Don’t go to the bank for a mortgage deal

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by Kay Mitchell

A review of the mortgage market performed by Moneyfacts, the financial information specialist, has discovered that banks are not providing the best homeloans.

Those on the lookout for the best mortgage deals have been warned to stay away from banks after establishing that 70% of the best deals come from building societies.

Julia Harris of Moneyfacts, said it is surprising that so few of the top priced mortgage deals are offered by the largest mortgage lenders. Apparently, 30% of the best 250 fixed, discounted and variable rate mortgages were offered by banks and the top 10 mortgage lenders have just 27.

Moneyfacts added that The Royal Bank of Scotland Group under the brands of First Active and Direct Line offer just 6 out of the top 250 deals. Furthermore, the largest lender the HBOS group, parent of Halifax, did not appear at all.

Moneyfacts advise shopping around to find the best mortgage deal and said making one of the biggest financial decisions of your life should not be based upon brand or the perceived convenience of your existing lender.

Moneyfacts said the mortgage market is settling down after a turbulent 6 months which, as a consequence, is encouraging lenders to keep rates on offer for longer and introduce new deals so those looking for a mortgage are in a good position.

Katie Tucker of mortgage brokers John Charcol concluded by saying that more lenders are offering a good selection of fixed rates for 2, 5 and 10 years.