Charlotte Nelson, Finance Expert at Moneyfacts.co.uk, comments: “Moneyfacts.co.uk has compared the mortgage offerings of building societies and banks and found that building societies are the undeniable winners.

“The average five-year fixed mortgage rate from banks is 3.51%, while the average rate from building societies is just 3.21% - a whopping 0.30% lower.

“Meanwhile, in the two-year fixed mortgage market the average rate from banks is 2.78%, but building societies once again trounce this with an average rate of 2.54%.

“Not only do building societies come out on top when it comes to rates, but the gap between their offers and those from banks is getting wider, suggesting that borrowers may need to look away from traditional banks to get the best deal.

“It is little wonder that building societies are doing so well as they are currently dominating the Best Buy charts. Indeed, several building society products are currently leading the market.

“It is disappointing that despite all the money given to banks from the Government-backed Funding for Lending Scheme and the ever-growing price war between providers that banks are still failing to compete on the overall cost.

“Now that local building societies are offering a genuine alternative to banks, perhaps it is time for borrowers look closer to home to get the best mortgage deal.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

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