New research from moneyfacts.co.uk shows that a number of the state-funded banks have set their mortgage product rates higher than the average bank mortgage charges.
Societies like Cheltenham & Gloucester (C&G), Halifax and Northern Rock have continuously had their two-year fixed-rate mortgage deals come with higher rates than the rest of the market for the past 12 months.
C&G charge 4.57 per cent for a two-year fixed-rate mortgage at 75 per cent loan-to-value. Northern Rock are the second highest at 4.37 per cent and the Halifax come in at a not too distant third with 4.27 per cent. The average across the whole of the market ? as of the beginning of March – is at 4.19 per cent.
Michelle Slade of moneyfacts.co.uk told the Financial Times: ?Many hoped that the state owned banks would be at the front of the queue for unlocking the mortgage market, but this isn?t the case.?
There has been a finding from the research that Royal Bank of Scotland (RBS) has been more competitive, who have the best deal at 3.84 per cent. Other banks that have rates which are below the average are HSBC at 3.99 per cent and Woolwich at 4.06 per cent.
Ms Slade commented on the situation: ?Some state funded banks appear to place a higher priority on getting out of Government ownership, rather than helping with competitive rates the customers who supported them.?
She continued: ?In the last year, only a handful of mortgage lenders actively promoted their products in order to increase their share of the market and it is these lenders that have come out well in our survey.?
