The annual survey from Defaqto shows that for standard variable mortgage costs, or the equivalent, Egg and HSBC occupied the top spots again, followed by Nationwide, Intelligent Finance, Direct Line and Standard Life Bank.
The figures were based on gross interest payable for £50,000 interest-only mortgages, excluding special deals or exclusives. If these had been included, West Bromwich Building Society would have secured fifth place.
Mark Hayes-Newington, group commercial director at Defaqto, said: “Surprisingly, in these days of greater rate transparency, there remains a significant difference between the cheapest and most expensive products.”
He added: “While a £50,000 standard variable rate mortgage costs about 3 per cent less on average to service in 2003 than it did in 2002, the recent rate increases may mean that next year’s annual costs will be higher.”
Top five cheapest lender by SVR in 2003
Top five Annual interest on £50,000 loan Difference from cheapest
Egg
£2,286.44
-
HSBC
£2,300.77
£14.33
Nationwide
£2,321.99
£35.55
IF
£2,367.19
£80.75
Direct Line
£2,447.38
£161.37
Bottom five lenders by SVR in 2003
Bottom five Annual interest on £50,000 loan Difference from cheapest
Bristol & West
£2,866.59
£580.15
Alliance & Leicester
£2,868.12
£581.68
Bradford & Bingley
£2,868.89
582.45
NatWest
£2,884.52
£598.08
Royal Bank of Scotland
£2,884.52
£598.08
Source: Defaqto
