Commenting, Kevin Bray, insight analyst in banking for Defaqto, said: “A one star product isn’t necessarily a poor product; it may just mean that it doesn’t have as many features or maybe it is not as flexible. But if people don’t need those features or that flexibility, it could be a perfect product for them.”
For the lifetime mortgage category it reviewed 77 different sets of criteria, such as LTVs, age bands, minimum loan requirements, drawdown options, and stay-at-home guarantees.
It awarded a 5-star rating to LV=’s flexible lifetime product; a 3-star rating to Aviva’s lifestyle flexible product; and a 1-star to New Life Mortgages, which is a landlord’s product.
As for the offset mortgage category, it reviewed 57 criteria, such as how accounts can be linked; flexible options such as under or over-payments; drawdown facilities; LTVs; regional restrictions; and the size of the fee. Loyalty fees were taken into consideration, as was how many facilities came with the account such as how the borrower can make transactions on the accounts. Again, the more features and flexibility, the higher the star rating.
Clydesdale and Yorkshire were awarded 5 stars for their offset variable rate with an LTV of up to 80%; Woolwich was awarded 4 stars; Scottish Widows was awarded 3 stars; Leeds Building Society, 2 stars and Beverley Building Society and Accord were both awarded 1 star.
