Building societies are increasing efforts to offer competitive mortgage rates, new research has suggested.
Carried out by the Telegraph, the study revealed mutual lenders are becoming more flexible in their offerings to first-time buyers (FTBs), while also placing an emphasis on niche borrowers.
According to the findings, building societies are adjusting their rates favourably regarding both savings and home loan markets.
It was demonstrated that these organisations account for more than 60 per cent of the best buy mortgages on the market at present, while also increasing offerings for FTBs who do not have 25 per cent equity in their dwellings.
Kevin Mountford of Moneysupermarket.com – which aims to help cut household bills by £1 billion in 2012 – noted people searching for the best mortgage rates will need to shop around in order to unearth the most competitive deals.
He stated: “Loyalty to any one institution, whether it’s a bank or building society, rarely pays.”
Ray Boulger, a mortgage broker with John Charcol, noted there are both good and bad building societies to be found, just as not all banks are the same.
