Recent market research shows that mortgages from lenders that have received help through the Government's bail out of the banking system are on average £48 per month more expensive. So not only have the Government lent the banks our money, but those same banks are charging us more for lending it back to us ! A phrase that the great economist, John Lydon, used to close the Sex Pistols American tour in 1978 springs to mind, "Ever get the feeling you've been cheated ?".
A first-time buyer taking out a mortgage with HBOS, Lloyds, Northern Rock Royal Bank of Scotland or any of their subsidiary brands would pay on average 5.02 per cent, while for the lenders that have not been bailed out the average is 4.87 per cent.
That equates to £48.67 extra on a £150,000 loan including all fees.
Forget any idea of loyalty to "your" banks, find a good financial adviser and get them to shop around for you. There are good mortgage deals out there but rarely from the bailout boys.
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