According to some new research by financial analyst Defaqto, the cheapest mortgages were provided by the banks in 2005, rather than building societies, reports the Motley Fool.
HSBC came at the top of the cheap list, followed by Intelligent Finance.
The top ten cheapest mortgage lenders were:
- HSBC
- Intelligent Finance
- Nationwide BS
- Skipton BS
- Britannia BS
- Co-operative Bank
- Direct Line
- Standard Life Bank
- The One Account
- Yorkshire BS
Defaqto’s survey compared the amount of interest paid during 2005 on an £50,000 interest-only mortgage; the table below lists the results for the UK’s largest lenders (specialist providers are excluded, as are any privilege or loyalty rates). Of course, this is only one specific case, so other lenders may have fared better in other tests.