Building societies undercutting the biggest banks

by Aaron Strutt

Feb 25 2011

A number of building societies have been offering the  lowest mortgages over the last few weeks and many of them are undercutting the biggest lenders.

The Monmouthshire Building Society has the lowest two year fixed rate at 2.99% and it has a decent arrangement fee at £975.  Borrowers will need a 35% deposit to access the rate. This mortgage is likely to be withrawn early next week.

The Barnsley Building Society offers a five year fix at 4.69% and borrowers will need a 25% deposit - the arrangement fee is 0.25% of the loan amount and the lender will lend up to £1 million.

Aaron Strutt, a broker at Trinity Financial, says: “It is nice to see some other lenders occupying the best buy tables. Building societies are now keen to lend across the country as they see realise that there is space for them.”

February 25, 2011