Mortgages -
2007's cheapest interest-only mortgages revealed - 02/01/2008
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Financial data service Defaqto has announced its annual 'cheapest mortgage lender' survey.
An even mix of banks and building societies were found in the firm's top ten cheapest interest-only mortgages for 2007 - with the top spot claimed by HSBC.
The bank's measured mortgage offered interest costs of £3,362 on a £50,000 loan last year - beating out Skipton, in second place on £3,435.
Nationwide, Intelligent Finance and Direct Line rounded out the top five.
David Black, consultant at Defaqto, commented: “In 2007 there were three increases in Bank Base rates and one decrease so it is not surprising that the average cost of servicing a standard variable rate mortgage for the largest lenders rose last year.
"While it is acknowledged that standard variable rate mortgages are only one type of mortgage, their importance may be increasing due to the knock-on effects of the credit crunch, making it more difficult to obtain attractive alternative deals.”
Defaqto's research was compiled by finding out the amount of gross interest payable on a £50,000 interest-only mortgage issued by a provider in 2006.
The firm did not measure specialist lenders for its survey.
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