When they compare mortgage rates, most people will imagine that the biggest lenders are able to offer the best mortgage rate.
But while the biggest mortgage providers are able to make more profit by running a bigger operation, they do not necessarily pass that on to homeowners through the best mortgage rate, research has suggested.
In fact, on a five year fixed deal the 50th biggest provider has the best mortgage rate and lower fees if you compare mortgage rates against the largest provider.
Overall, 18 small lenders offer the best mortgage rate and lower fees when researchers compare rates against the largest high street provider.
“Whilst consumers may assume that the larger and well known lenders will offer the best deals, be more cost effective and generally pass on the benefits of their corporate wealth to their customers, this is certainly not always the case,” best mortgage rate analyst Rachel Mckay told My Finances.
“It is important that the customer realises that there is a huge choice when it comes to mortgage providers, and as the information above shows, biggest doesn’t always mean the best deal,” she added.
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