Cashpoint

Best buy mortgage deals with the big six lenders could leave borrowers hundreds of pounds worse off, says online mortgage broker Trussle. It reveals that the true cost gap between lowest rate deals from Barclays, HSBC, Lloyds Bank, Nationwide Building Society, RBS and Santander, and a higher rate with fewer additional charges, is an average £390 over the term.

Buying a property at the UK average £225,956, with a 40% deposit (so borrowing £135,574) would cost £649 more with Barclays’ lowest two-year fix at 1.39% with £999 fee, compared to its 1.63% deal with no fee. Ishaan Malhi, of Trussle, said: “The big six lend to more than two-thirds of UK mortgage borrowers, and have huge influence on people’s dreams of owning a home.

“They should be the ones leading the charge for transparent mortgage pricing, instead of the unfair promotion of low rate products that come with high fees.”