Best mortgages 'not coming from bigger names'

Moneyfacts.co.uk has revealed that the bigger name brands are not offering the most competitive mortgage deals, with building society products dominating the top 250 deals.

The Council of Mortgage Lenders' top ten lenders' products make up just 11 per cent of the top 250, the website's study has found, with building societies accounting for some 70 per cent.

Moneyfacts has therefore highlighted the importance of not relying on a known brand or existing lender when looking to take out a new mortgage.

"Despite the vast amount of information in the public domain and the still prominent role of the financial adviser, brand and high street values still seem to be winning customers," said Moneyfacts mortgage expert Julia Harris.

"While some deals offered by these providers may offer the best solution to an individual customers needs, the findings show that, for the majority of borrowers, the deals from building societies and smaller lenders are winning hands down," Ms Harris added.

Several thousand first-time buyers are risking negative equity due to having taken out mortgages with a loan-to-value of at least 100 per cent in recent months, mform.co.uk advised earlier this week.

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