Building Societies cheaper than banks, moneyfacts claims

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Building Societies are offering cheaper fixed rates than mainstream banks, moneyfacts claims.

Moneyfacts said typical 5-year fixes cost 3.00% from banks and 2.59% from building societies, while 2-year fixes cost 2.33% from banks and 2.27% from societies.

The banks included in the research were Barclays, Halifax, HSBC, Lloyds Bank, NatWest, Royal Bank of Scotland, Santander and TSB, while moneyfacts used society data from all of those on its system that offer 2 and/or 5-year fixes.

Charlotte Nelson, finance expert at moneyfacts.co.uk, said: “Building societies are offering borrowers a better deal when it comes to rates.

“For example, the average five-year fixed rate mortgage from a building society is a whopping 0.41% lower than that of one offered by the main banks.

“The difference in price of the average two-year fixed rate between these rivals has shrunk over the years, due to this being a key focus for all lenders. However, even in this extra-competitive area building societies offer borrowers a slightly better deal.”

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Written by: Houseladder