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Banks offer cheaper mortgage rates

Banks offer cheaper mortgage rates

Category: Mortgages

Updated: 20/03/2009
First Published: 20/03/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The mortgage rates offered by banks are often cheaper than those from building societies, Moneyfacts.co.uk research has revealed.

While the average bank standard variable rate now stands at 4.30%, the building society average is currently 5.02%.

Meanwhile, two year fixed mortgage rates from banks stand on average at 4.66%, compared with 4.88% from building societies, although average fees are just £837 through a mutual, £148 cheaper than those of a bank (£985).

In terms of two year tracker mortgages, the average rate available through both is 3.55%, but the fee is again lower at a building society (£985) than a bank (£1,024).

"As a result of their diverse income streams, the banks have been able to pass on more of the base rate reduction to their customers through lower mortgage rates," said Michelle Slade, analyst at Moneyfacts.co.uk. "Despite it being a sluggish mortgage market, the main high street banks want to be seen as offering the most competitive deals."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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