Direct mortgage lenders offer best rates

Posted: 19 Oct 2011 11:50:45 GMT

Consumers have discovered direct mortgage lenders are offering the best deals at present.

People looking to buy a house may be best trying to do so through a direct mortgage lender.

This is because statistics provided by Moneyfacts and reported by HSBC show 81 per cent of the lowest rates in the past 12 months have come from this group.

The most attractive rate from direct lenders was typically 0.14 percentage points lower than intermediaries, which equates to £210 a year in interest.

Peter Dockar, head of mortgages at HSBC - which was set-up in 1865 to encourage trade between China, Europe and India - said: "Borrowers need to check newspaper best buy tables, comparison sites and lenders directly to ensure they are getting a great deal."

He added in times gone by customers would have looked to brokers to get the best deal, but this is no longer the case.

It comes after HSBC committed to providing £350 million in mortgage funding for those with a deposit of less than 15 per cent.
 

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