Research suggests that the top 10 Biggest mortgage lenders offer amongst the most expensive mortgage deals in the UK. The council of mortgage lenders made a list of the best 250 mortgage deals and then worked out what % of these deals were offered by the big companies.
The top 10 lenders offered only 11% of the best 250 mortgage deals. This is despite the big 10 having more than 60% of the market. Many of the best deals were from smaller building societies, who haven’t demutualised. (see top 10 building society lenders)
One of the worst performers was HSBC, which had no mortgage deals amongst the best 250.
This suggests that high profile brand names are able to exploit consumer loyalty and charge higher premiums. However, there is no reason to avoid getting a mortgage with a lesser known building society.
Switch to the smaller building societies and potentially benefit from significant savings.
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[...] A recent report showed that the best value mortgage deals came from small building societies. The Big 5 Banks featured very little in the list of Best 250 Mortgage deals. See article [...]
[...] The best mortgage deals are often given by the smaller mortgage lenders and not the main high street banks. Therefore, don’t assume that the bigger lenders will be able to offer the best rates. - See (best mortgage deals - avoid big banks) [...]
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