Best Sources for UK Mortgages, Biggest isn’t always best!
Housing-Market / Mortgages Feb 21, 2011 - 04:15 AM GMTBy: MoneyFacts
The UK’s largest lenders* have a three quarter market share, but only provide 145 (29%) of the top 500 mortgages.**
Just six of the top 50 two year fixed/85% LTV mortgages are offered by the largest lenders, equating to a mere 12%.
The largest lenders are most competitive in the two year tracker market, but this still only equates to less than half of the top 50 deals.
Michelle Slade, spokesperson for Moneyfacts.co.uk, commented:
“The figures show that ‘biggest isn’t always best’. In many cases the most competitive mortgage deals are not being offered by the largest mortgage lenders.
“Larger lenders appear to be concentrating on offering more competitive deals to borrowers with at least a 25% deposit.
“When selecting a new deal, borrowers should ensure they look at the true cost of the mortgage, including the fee.
“A deal with a low rate, but a high fee could work out more expensive than a slightly higher rate with a much lower fee.
“Some of the lowest rates on the market charge a percentage fee, which can work out very expensive if you have a sizeable mortgage.
“In a time when the cost of mortgages continues to rise, these results show that it is even more important for borrowers to shop around to get the best deal.”
* Lenders used include: Halifax, Cheltenham & Gloucester, Lloyds TSB Scotland, Santander, Alliance & Leicester, Abbey for Intermediaries, Nationwide BS, Woolwich from Barclays, Royal Bank of Scotland, NatWest, Northern Rock, HSBC and first direct.
** Figures based on true cost of a £130,000 repayment mortgage for both house purchase and remortgage. The figures were taken from the top 50 deals for two and five year fixed rates at 75% and 85% LTV and two year trackers at 75% LTV.
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