Press
Mortgage Solutions 4th Jan 2005
Mutuals and direct lenders lead the way
Many of the relative newcomers to the mortgage market and the smaller mutuals offer some of the most competitive rates, according to Moneyfacts.
In its standard variable rate (SVR) mortgage survey, the provider of personal financial information reviewed the annual interest cost of a £150,000 mortgage at the lenders’ SVR between 1 January 2005 and 31 December 2005.
The survey of all lenders found First Direct took the top spot for the lowest interest payments, while previous top performers, Egg and HSBC, occupied top five positions. Harpenden Building Society also featured in the top five.
According to Moneyfacts, the full range of lenders covered was highlighted by the presence of smaller players such as Stafford Railway Building Society, which reached second place, even though it only had one product.
Moneyfacts also said the survey continued to underline the competitiveness of the mutuals, which occupied over half of the top 25 positions.
Commenting, James Carter, independent financial adviser at Virtue Financial, said lenders offering the best SVR might not be offering the best discount or fixed rates. Carter added: “A lot of clients will still be better off remortgaging every few years even though I think this year we will see a move away certainly from two-year deals to slightly longer deals, and also increased focus on variable rates.”