Building Society Rates Lower Than Banks
Competition is still fierce in the mortgage market, and with many high street banks claiming to launch the cheapest products ever on their records, many borrowers could assume that the mortgage rates from these providers will be significantly lower than those offered elsewhere. However, our latest research shows that things aren't always as they seem, as building societies are the clear winners when it comes to the mortgage rate war.
The average two-year fixed rate for a 60% loan-to-value (LTV) mortgage comes in at 1.92% from banks compared with 1.67% from building societies, so customers of a mutual could get a rate that's 0.25% cheaper. The savings are even stronger when looking at higher LTVs and over longer terms, so it appears that while banks may shout louder about their low-cost deals, it's actually building societies that are quietly offering their loyal customers the best rates available - and in many cases, by a pretty big margin
The domination of building societies is clear to see when you cast your eye over our Best Buy tables, where the vast majority of the top two-year fixed rate deals available are offered by mutuals. More importantly, the lowest deals aren't just reserved for those with larger deposits