Building societies offer the best mortgage flexibility.

According to a recent report, building societies offer the best mortgage deals.

Having increased their mortgage lending and improved their best mortgage rates, building societies are proving a far more popular choice of lender than high street banks.

New research carried out by The Telegraph reveals that almost two thirds of best buy mortgage deals are offered by mutuals. Mutual organisations are owned by members and customers and not shareholders, and they tend to offer more affordable mortgage products for those with a deposit under 25% than larger banks.

Business Secretary, Vince Cable recently commented saying that because building societies are owned by members rather than shareholders, they can deliver better long term value mortgage deals and savings rates.

Martin Shaw speaking on behalf of the Association of Financial Mutuals has said that because mutuals do not need to pay dividends to shareholders profits can be used to provide cheaper rates, better customer service and higher investment return.

Several building societies have become strong players in the mortgage market.

According to Moneyfacts smaller sized building societies such as Melton Mowbray, Hinckley & Rugby, Leek United, Market Harborough, Cheshire and Nottingham have all offered best buy mortgages in the last year.

An added benefit to this is these lenders often review mortgage applications on an individual basis case by case, rather than relying on automated credit scores. Applicants who might otherwise be rejected by larger banks are being accepted for a deal.

For the best mortgage offers contact Deal Direct.

Call one of our advisers for a mortgage market comparison.