Banks continued to be the cheapest mortgage lenders for existing borrowers in 2006, according to research from Defaqto.
Based on information from the top 30 lenders of 2005, as defined by the Council of Mortgage Lenders (CML), the cheapest standard variable mortgage for existing borrowers on a £50,000 loan in 2006 was from HSBC and cost £2,888.
This was almost £500 cheaper than the most expensive equivalent deal provided by Bank of Scotland at £3,381.
Intelligent Finance was the second cheapest deal at £2,918, but the next three lenders in the top five were Skipton (£2,997), Nationwide (£3,014) and Britannia (£3,119) building societies.
The rest of the top 10 was made up by Standard Life Bank (£3,144), The One Account (£3,169), Direct Line (£3,207), Yorkshire (£3,251) and Principality (£3,272).
David Black, head of banking at Defaqto, says: “Despite two Bank of England base rate increases last year, on average they did not change significantly from 2005 so it’s not surprising that it cost virtually the same to service a standard variable rate mortgage as it did in 2005.”
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