Mortgage customers seeking to cope with rising interest rates should think small, according to research from online mortgage company mform.co.uk.
Smaller building societies currently dominate the best buys for all two, three and five year deals based on the total cost customers would pay including monthly repayments, fees and charges.
The analysis shows for each category of two-year, three-year and five-year deals, smaller building societies make up at least eight out of the top 10.
The only High Street name to make the top three in any of the categories is Alliance & Leicester with a five-year discounted variable deal offering an initial rate of 5.13%.
The results show building societies including Beverley, Darlington, Earl Shilton, Furness, Holmesdale, and Marsden are currently all offering deals which put them ahead of big name lenders.
Eamonn Rice, mform.co.uk chief executive, said: “Borrowers looking for the cheapest deals should widen their horizons if they want to save money.
“Smaller societies are competing strongly and offering excellent deals. It is striking that they dominate the best buy lists across two, three and five years at a time when the 25 biggest brands account for around 94% of mortgages advanced.”
Restricting the search to fixed rate products did little to raise the profile of the well-known mortgage providers. NatWest led the two-year results but the next four lenders to appear were all regional building societies and the three and five-year fixed rate tables were topped by Darlington and Coventry Building Societies respectivelyIFAonline
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